The Water and Power Development Authority (Wapda) has cancelled two of its major contracts with a Chinese company, even before the official launch of $4.5 billion Dasu hydroelectric power project.
The WAPDA cited 'fundamental breaches' of the agreement, while terminating the contracts.
While inviting fresh tenders to make up for lost time, Wapda moved fast to encash the performance guarantees of the two contracts offered to China Railway First Group (CRFG) in November 2015 worth Rs5.4bn and also to ask the contractor to vacate the project area immediately.
The World Bank is the major funding agency of the 4,320MW Dasu project, whose cancelled contracts include the 'construction of colony and infrastructure' worth Rs4.806bn and 'resettlement of village Choochang and construction of Shatial Museum' valued at Rs572 million.
The completion of these two components was viewed as crucial to the start of building work at the primary project site.
The WAPDA cited 'fundamental breaches' of the agreement, while terminating the contracts.
While inviting fresh tenders to make up for lost time, Wapda moved fast to encash the performance guarantees of the two contracts offered to China Railway First Group (CRFG) in November 2015 worth Rs5.4bn and also to ask the contractor to vacate the project area immediately.
The World Bank is the major funding agency of the 4,320MW Dasu project, whose cancelled contracts include the 'construction of colony and infrastructure' worth Rs4.806bn and 'resettlement of village Choochang and construction of Shatial Museum' valued at Rs572 million.
The completion of these two components was viewed as crucial to the start of building work at the primary project site.