FCC clears hurdles to completion of Nai Gaj Dam

• Sets aside SHC orders allowing contractor to claim price escalation beyond agreed terms• Orders completion of remaining work under original contract

ISLAMABAD: The Federal Constitutional Court (FCC) on Monday set aside a series of Sindh High Court (SHC) orders in the long-delayed Nai Gaj Dam dispute and directed the contractor to complete the remaining work strictly in accordance with the original contract, the arbitral award and the Sept 21, 2021 memorandum of understanding (MoU).

The SHC judgements had allowed the contractor, NEIE SMADB-LILLEY-RMS Karachi, to claim price escalation beyond the agreed terms.

A two-judge FCC bench, headed by Chief Justice Aminuddin Khan and also comprising Justice Ali Baqar Najafi, heard a set of appeals and expressed the expectation that all parties, including the contractor and Wapda, would honour their commitments and complete the project in accordance with the original contract.

To ensure uninterrupted execution of the project, the FCC also ordered that no judicial proceedings or intervention by any court would be permissible until completion of the dam, except in accordance with the dispute resolution mechanism contained in the original contract.