ISLAMABAD: The government of Punjab has rejected the proposal of property tycoon Malik Riaz for the construction of Dadocha Dam as the Bahria Town-led joint venture (JV) proposed over Rs26 billion for acquisition of land against Rs2.8 billion worked out by the government.

Additional Advocate General (AAG) Punjab Qasim Nawaz Chuhan informed a Supreme Court bench headed by Chief Justice of Pakistan (CJP) Mian Saqib Nisar that the proposal regarding the future water reservoir for Rawalpindi was not acceptable for the government and the provincial authorities would execute the project on their own.

CJP Nisar showed his displeasure over the ‘negative’ response and said the Malik Riaz-led JV were constructing the dam for free.

Bahria Town-led joint venture seeks Rs26bn for acquisition of land against Rs2.8bn worked out by govt, SC informed

“It is not free sir, they are charging Rs26.7 billion as land acquisition cost,” replied Mr Chuhan.

Justice Nisar remarked: “Visibly Punjab government could not complete the dam despite lapse of years.”

He added: “Malik Riaz offered construction of dam on a build, operate and transfer basis and the Punjab government took time to consider the proposal. Flimsy reasons are given [for not availing the offer] which shows the government does not want to complete the dam.”

Justice Nisar also highlighted the importance of water reservoirs owing to existing water scarcity which would aggravate in future.

When the court asked how much time the provincial government would take to complete the project, the AAG said two years.

The CJP directed the government to submit a report on the construction of the dam along with the probable date of its completion by Monday.

The AAG requested the court to expunge the word ‘flimsy’ from the order sheet.

But Justice Nisar dictated: “It is my perception that the response of government of Punjab was flimsy, baseless.”

He then asked the fellow judge to suggest a suitable superlative degree and got another word “unsubstantiated” which he incorporated in the order sheet.

When the counsel requested the court to at least let him argue the case, the CJP directed him, “you will not appear before this court especially bench 1 [headed by CJP] from tomorrow”.

Subsequently, the court adjourned the hearing without considering the “report of the committee regarding unsolicited proposal” of the Defence Housing Authority (DHA), Bahria Town and Habib Rafique (DBH) for the construction, operation and maintenance of the dam.

The report noted that instead of the government rate for the land, the DBH JV had estimated the price of the land on the basis of its investment in the housing scheme, DHA Valley, which was lying dormant for over a decade.

The cost of the project was to be borne by the JV and the government of Punjab, it added.

As per the PC-I, the land acquisition was to cost Rs2.8bn whereas the DBH-JV had proposed Rs26.7bn which was to be borne by the provincial government. Moreover, the JV would bear Rs3.5 billion cost for the construction of the dam.

The JV has submitted that that out of the 18,556 kanals proposed for the project, 15,896 kanals was owned by DBH-JV partners and that in view of the joint venture the government should not initiate fresh land acquisition proceedings.

It said: “The JV invested Rs6.5 billion for the purchase of the land now subject to proposed acquisition for the dam. Further, DBH-JV spent about Rs1.7 billion on the development of 1,444 residential plots, 451 commercial plots and other facilities for the purpose of its scheme on the land.”

The committee rejected the proposal of DBH-JV since it did not submit the details of its legal, technical, managerial and financial capability, and also did not indicate the amount it wanted to earn from the water obtained from the dam.

Moreover, JV did not submit proposals related to economic viability of the project which was mandatory under the Public Private Partnership Act 2014.

The feasibility study for the dam was approved in 2013-14 after which the irrigation department hired consultants for the purpose.

In 2002, a pre-feasibility study of the site was carried out by the Small Dams Organisation which remained under consideration for the construction of the dam, the report stated, adding a notification under section 4 of the Land Acquisition Act 1894 was issued on Nov 3, 2010, to secure the land.

The area is part of Kahuta, Kallar Syedan and Rawalpindi tehsils of Rawalpindi district.

Published in Dawn, November 2nd, 2018