LAHORE: The Developing Resilient Environment and Advancing Municipal Services (DREAMS) project, a flagship initiative jointly funded by the Asian Development Bank (ADB) and the Punjab government, is poised to gain renewed momentum after the Local Government & Community Development Department officially dismissed a petition filed by a stakeholder that had challenged the legitimacy of the joint venture involved in a key contract.

The clearance of this major procedural hurdle has paved the way for the project’s progression, Dawn has learnt.

“On the directions of the Lahore High Court, I have passed a speaking order, dismissing the petition. Now no hurdle is left in the way of this important project,” the local government department’s secretary Mian Shakeel said while talking to Dawn on Sunday.

Launched in November 2024, DREAMS project aims to revolutionise municipal services and urban infrastructure across Punjab. Designed in accordance with international practices and governed by the ADB’s Project Administration Manual (PAM), the project incorporates robust frameworks for procurement, funding and oversight to ensure transparency and efficiency. The project, besides many other advantages, will provide an integrated water supply system based on Chahan Dam for Rawalpindi and augmentation of water supply for Rawalpindi.

Procedural hurdle removed after decision on petition against the joint venture

Despite its strong foundations, the project recently faced delays due to procurement-related disputes. Central to the controversy was a contract awarded to a Turkish bidder—initially in partnership with a local company. The joint venture was dissolved amicably and in accordance with the project’s contractual framework under the guidelines of the International Federation of Consulting Engineers (FIDIC). However, objections from the head of City Implementation Team (CIT), a senior official at Wasa Rawalpindi, temporarily stalled the progress. The critics argue that his appointment, attributed to political influence rather than merit, further complicated the matters. Paradoxically, the same officer later proceeded to sign the contract of Lot-2 and Lot-3 in January 2025, actions that contradicted his earlier objections and added ambiguity to the procurement process. His continuous resistance led to prolonged bureaucratic gridlock, ultimately resulting in his removal in February, 2025.

Throughout these internal challenges, the ADB remained steadfast in its role. The bank issued a No Objection Letter (NOL), confirming that the procurement process adhered to its stringent protocols and that all necessary formalities were completed before the contract awards.

To reinforce transparency and ensure due diligence, the Chief Minister Inspection Team (CMIT) conducted an exhaustive review of the bidding process. The CMIT’s report has now been forwarded to the Planning & Development Board with a recommendation for the steering committee to formally endorse the project’s continuation at its upcoming session. The officials within the CMIT emphasized that earlier steering committee engagement could have preempted many of the delays, underscoring the need for timely and collaborative governance in large-scale development programmes.

The recent dismissal of the petition by the Local Government Department—originally filed before the Lahore High Court (LHC), Rawalpindi Bench—has significantly clarified the legal landscape surrounding the joint venture. This development not only removes a major obstacle but also strengthens investors’ confidence in the government’s commitment to transparent and lawful project execution.

With these hurdles now largely behind it, DREAMS project is set to resume full-scale operations. Stakeholders anticipate that the project will now proceed with greater focus and unity, fulfilling its core mission of improving urban infrastructure, enhancing municipal services, and uplifting living standards for communities across Punjab.

It is pertinent to mention that the government had, in February this year, had launched an inquiry into the award of contract for this project Phase-I worth Rs22 billion in Rawalpindi to bring water from Chahan Dam. The ADB has provided USD 114m soft loan to the government to launch four mega projects in the garrison city to provide clean water to its residents and work started in October, last year.

According to the department, the ADB-funded projects are governed by Project Administration Manuals (PAM) signed between them and the borrower. These agreements specify procurement, monitoring, funding, and other terms. In case of conflict with local laws, foreign guidelines persist. The project arrangement was such that the Project Co-ordination Unit (PCU) DREAMS-I headed by programme director was to oversee procurement, coordinate between government agencies, and maintain project oversight.

“Since this is a very important project, we will resume work on it very soon after fulfilling all legal formalities,” the department secretary said.

Published in Dawn, April 7th, 2025