Skip to main content

Karachi's Red Line suffers another blow as decision to cancel Mosamiyat-to-Numaish contract declared ‘invalid’

KARACHI: In a major blow to hopes of easing Karachi’s transportation crisis anytime soon, the Sindh government’s decision to cancel the Bus Rapid Transit (BRT) Red Line construction contract has been declared “unlawful, invalid, null and void”.

The ruling was delivered by the Dispute Resolution Board after the Sindh High Court asked the parties to approach the forum.

The Dispute Board’s decision also delivered an extraordinary indictment of the very agency entrusted with executing the project — TransKarachi — questioning its institutional capacity and pointing out its lack of experienced project management needed to administer a project of this magnitude and complexity.

The contract requires both the employer (TransKarachi/Sindh government) and the contractor to resolve the dispute through an independent Dispute Board before resorting to formal court lawsuits.

The Sindh government had announced termination of the BRT Red Line project’s key segment called Lot-2 from Mosamiyat to Numaish, over “lack of progress”. Immediately, the construction company, AM Associate, filed a constitutional petition in the Sindh High Court challenging the government’s decision and accused the provincial government of delaying the scheme.

Decision, in favour of contractor, by Dispute Resolution Board declares TransKarachi, the Sindh govt-owned implementation agency, lacked institutional capacity to manage the project

The High Court directed both parties to abide by their signed agreement and ordered the activation of the Dispute Board as pre-agreed contract terms.

After more than two months of hearings, the Dispute Board has declared the government’s cancellation of the contract unlawful and invalid. It said that decision was taken in haste, without considering the complexity of the project.

The board also declared that the government-owned company TransKarachi’s lacked institutional capacity to manage a project of this scale.

“The evidence indicates that the Employer [TransKarachi] lacked the institutional capacity and sufficiently experienced project management necessary to administer a project of this magnitude and complexity,” said the board’s in its detailed decision, a copy of which is available with Dawn.

The board’s verdict has now exposed a far more explosive reality that the problem is not simply with the contractor’s performance, but the project’s own implementing agency, Sindh government-owned TransKarachi, lacked the capacity to deliver the project.

It found that the TransKarachi had been unable to fulfil “several of its fundamental contractual obligations” at the commencement of the works.

The design had not been finalised, possession of the entire site free from encumbrances had not been provided, numerous physical obstructions remained and substantial payments due to the contractor were outstanding, it said.

According to the board, these matters “materially affected the Contractor’s ability to execute the works” and “substantially contributed to the delays encountered during the performance of the contract”.

The Dispute Board has pointed failures in fulfilling basic contractual obligations, deficiencies in project administration, repeated design revisions, inadequate coordination, delayed decision-making and a lack of evidence that available alternatives to termination were properly considered.

The shortcomings, it added, were compounded by deficiencies in the performance and coordination of the engineer and consultants, resulting in “ineffective contract administration and delayed decision-making throughout the Project”.

On the decision to terminate, the board said the Engineer and Consultants should have advised the Employer to pursue reasonable contractual alternatives, given the scale and complexity of the project and the practical constraints surrounding its execution.

“The board has seen no evidence that these, or any other less drastic measures, were meaningfully considered,” it added.

Instead, the board found that insufficient attention had been given to resolving outstanding issues.

“In the board’s view, effective and proactive contract management could reasonably have preserved the contract,” it said.

The board concluded that the evidence did not demonstrate that the decision to terminate the contract had been preceded by a genuine consideration of the contractual alternatives available. The termination, it therefore found, “was premature and was not a measure of last resort”.

Published in Dawn, August 9th, 2026



from Dawn - Home https://ift.tt/oqBGe7E

Comments

Popular posts from this blog

Explainer: Iran’s economy faces rocky road amid rising prices, falling currency

Iran’s economy is going through one of its most difficult periods in years, fueled by sanctions, high inflation, and a significant drop in the value of the national currency, the rial. These pressures have had a direct impact on living standards and have also fueled recent protests. The protests began on Dec. 28 in commercial hubs in the capital Tehran, when shopkeepers, merchants, and small business owners staged strikes and demonstrations to protest soaring inflation, the collapsing rial, and deteriorating economic conditions, and have since grown into nationwide anti-government expressions of discontent involving workers, students, and others across multiple cities. The Iranian president said Sunday that his government is determined to address Iran’s economic problems amid the protests. Masoud Pezeshkian said the government admits to “shortcomings and problems” and is working hard to alleviate the people’s concerns, especially on the economy. Currency collapse at the centre of c...

Ministers rubbish notion that proposed retirement age extension to favour ‘one particular institution’

Information Minister Attaullah Tarar on Tuesday rubbished the notion that a proposed extension in the retirement age was to favour “one particular institution”, adding that the move would be implemented across the board if approved. The rebuttal comes in the wake of media reports claiming that the government was mulling changes to the Constitution to fix the tenure of the chief justice . Currently, judges of the Supreme Court, including the chief justice, retire after attaining the age of superannuation, i.e. 65 years, as stipulated in Article 179 of the Constitution. While giving his opinion recently on the reports of the constitutional amendment, Law Minister Azam Nazeer Tarar had said he “will not vehemently turn down the proposals related to the tenure of the chief justice”. Addressing the issue during a press conference in Islamabad today along since Finance Minister Muhammad Aurangzeb and the law minister, Attaullah said the extension in the retirement age was “a proposal to a...

Mitchell Starc surpasses Wasim Akram as most prolific left-arm pacer in Test history

Australian veteran Mitchell Starc became the most prolific left-arm paceman in Test history on Thursday, surpassing Pakistan great Wasim Akram. The 35-year-old bagged England’s Harry Brook at the Gabba in Brisbane on day one of the day-night second Ashes Test for his 415th wicket since his debut at the same ground 14 years ago. It moved him past Wasim, widely recognised as the greatest left-arm bowler the sport has seen. Wasim played 104 Tests for his 414 wickets with Starc reaching the milestone in his 102nd, helped by a career-best 7-58 in the first innings of the opening Ashes Test at Perth. Starc is now 16th on the all-time wicket-taker list and could move above both India’s Harbhajan Singh (417) and South Africa’s Shaun Pollock (421) in the current pink-ball Test. After that he will have New Zealand’s Richard Hadlee (431) in his sights. from Dawn - Home https://ift.tt/xclHiX2