The Sindh High Court (SHC) has clarified that it did not pass any observation or direction to slow down the pace of work on the Red Line Bus Rapid Transit (BRT) project.
The SHC stated this during the hearing of a petition against non-completion of the Red Line BRT project by the Sindh government despite a lapse of eight long years.
The TransKarachi, a company tasked with maintenance of the project, filed comments submitting that private contractors had slowed down the pace of work on the site on the excuse of litigation.
The high court was informed that a meeting under the chairmanship of the senior provincial minister for transport was held to resolve the dispute of stakeholders with regard to construction of the BRT project but no fruitful outcome was achieved and mediation process ended without a mutually acceptable settlement.
The TransKarachi said it was collectively agreed that disputes between the parties shall be referred to arbitration in accordance with the provisions of the contract.
It was said that the TransKarachi had named a former Supreme Court judge as the arbitrator, which was refused by contractors who desired to nominate his own representative as the arbitrator.
The TransKarachi submitted that a private contractor also threatened to slow down or suspend the ongoing work unless the financial demands were met and previously determined amount under the DAB (dispute board) decision was released immediately.
The SHC was informed that this coercive conduct violated the spirit of the contract and endangered the continuity of the vital public project funded by Asian Development Bank and Sindh government.
It stated that legal advisors had confirmed that under the FIDIC conditions of contract and ADB’s procurement guidelines, no payment could be made in advance of arbitration and disputed sum could only be released after the final arbitral award or mutually executed settlement agreement.
The TransKarachi requested the high court to declare that both parties had lawfully proceeded to arbitration and confirm the former SC judge as the arbitrator. It also sought a direction for the contractors to not slow down or suspend the construction work during the pendency of arbitration proceedings.
One of the contractors also filed an application to become an intervener in the case. The SHC issued notices to the parties concerned on the application.
In the meantime, the high court clarified that it had not passed any observation or given any direction for slowing down pace of the work on the BRT project.
The petitioner had submitted that the Sindh government had announced in 2017 the construction of the Red Line BRT project from Malir Halt to Numaish via University Road and the said project had a strong backing from the Asian Development Bank, Asian Infrastructure Investment Bank, Agence Francaise de Developpement and Green Climate Fund with a total estimated cost of USD 503 million.
He submitted that as per media reports, the initial cost of the project had been estimated at Rs79 billion, however, due to persistent delays and mismanagement, the estimated cost had now escalated to Rs103 billion.
He said that after the commencement of work in early 2022, the project was initially scheduled for completion by 2023, which was later pushed to 2024, and had subsequently been extended to the end of 2026.
He said that even revised timeline appeared wholly unrealistic as the project continued to progress at a snail’s pace and the government authorities continued to make false promises and assurances.
The petitioner submitted that dug-up roads, open drains, excessive dust, and unsafe pathways had collectively created conditions unfit for a livable urban environment. He said the Sindh Environmental Protection Agency itself had reported worsening air quality, with particulate matter (PM) levels now exceeding the safe limits prescribed by the World Health Organisation.
The petitioner’s counsel, Omer Memon, said that inefficiency and mala fide intentions of the respondents now stood reflected in their own admissions as the respondents had conceded that even the revised target of completion by the end of 2026 was ‘unlikely’, with projections now extending to as far as 2027.