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Sindh terminates BRT project contract citing ‘persistent delays’

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Sindh govt terminated contract due to continuous delays, non-satisfactory performance


KARACHI:

The contractor of the BRT Red Line project approached the constitutional bench of the Sindh High Court on Wednesday, seeking the de-sealing of the construction site after the provincial government sealed the office following contract termination.

A day earlier, the Sindh government had announced the termination of the construction contract for the project in Karachi, citing persistent delays, unsatisfactory performance, and violations of health, safety, and environmental standards.

The contractor challenged the sealing of the project office and site, which was carried out by local authorities, including the mukhtiarkar, police, and the Deputy Commissioner (East), and maintained that expensive machinery belonging to the contractor remained at the site and had effectively been left unused following the sealing.

According to the petitioner’s counsel, Barrister Salahuddin Ahmed, the Red Line Lot 2 contract had been awarded to Pakistani and Chinese companies, and delays in the project had been a key point of dispute.

He argued that the project design was handed over after a significant delay and that the site was provided to the contractor only after 30 months, adding that the dispute resolution board had previously held the government responsible for delays and awarded Rs3.7 billion in additional costs to the contractor.

Ahmed further argued that authorities sealed the office and site without legal notice, calling the action an abuse of power.

The contractor requested the court to order the immediate de-sealing of the site and restoration of access; however, a verbal request was rejected.

During the hearing, the court appointed a bailiff to visit the BRT Red Line Karachi site and directed that an inventory of the machinery present be prepared and submitted. The court also fixed the bailiff’s fee at Rs200,000, stating that it would be paid by the petitioner.

The court also issued notices to TransKarachi, the Sindh government, the mukhtiarkar, police, and the Deputy Commissioner (East). The case was adjourned until April 29.”

A day earlier, TransKarachi, in a statement, said decisive action had been taken over slow progress on Lot 2 of the project. “The contract awarded to the CR3 and AMS Associates joint venture was terminated due to continuous delays, non-satisfactory performance, and violations of health, safety, and environmental standards.”

It added that a delegation from the Asian Development Bank (ADB) had raised serious concerns over the contractor’s performance, pace of work, and compliance with occupational health and safety requirements during a recent visit.

“Lot 2 of the project includes the Mosmiyat to Numaish corridor, where work was found to be below required standards,” the statement said.

TransKarachi said formal procedures were underway to finalise the termination, adding that the “government reiterated its commitment to ensuring the timely completion of infrastructure projects, along with strict monitoring and accountability.”

Read More: Green Line Phase II embroiled in dispute

The foundation stone for phase one and phase two of the BRT project, which includes procurement of buses and civil works, was laid in August 2022 and was expected to be completed by 2024. However, this completion timeline was then extended to the end of 2026.

BRT Red Line is a multi-million dollar project, with a price tag of $503.3 million, out of which the ADB would provide $235m, the Asian Infrastructure Investment Development Bank would provide $71.81m , the French Development Agency $71.81m, while the Green Climate Fund a $11.8m grant and $37.2m in loans; whereas, the Sindh government would cover the remainder $75.71m.



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