In a pivotal development, the court has intervened in the escalating dispute surrounding the Peshawar Bus Rapid Transit (BRT) project, urging both the contractor and the Provincial Development Authority (PDA) to swiftly determine the composition of the arbitral tribunal. This comes as the project, slated to encompass three packages, faces a staggering claim of Rs57 billion in disputed payments from JV Contractors, the project’s principal contractor.
Should JV Contractors’ claim find favor, the national exchequer braces for substantial financial repercussions, potentially exacerbating the project’s already soaring costs. With the BRT initiative’s total expenses projected to surpass Rs120 billion, encompassing three packages and additional parking facilities, the ramifications of this dispute reverberate far beyond mere financial strain.
The contractor’s demand, predicated on a multitude of factors including expanded project scope, frequent design alterations, cost escalations, delayed payments, and accrued financial penalties, underscores the complexity of the impasse. Moreover, the International Court of Arbitration’s directive for the PDA to furnish a response within 30 days underscores the urgency of the situation.
In a bid to expedite proceedings, the court has presented two alternatives for the composition of the arbitral tribunal: either a solitary arbitrator or a three-member panel. Notably, the estimated fees for arbitration are substantial, with a single arbitrator costing $320,958 and a three-member tribunal amounting to $758,086.
As the specter of arbitration looms large, the controversy surrounding the Peshawar BRT project shows no signs of abating. Concurrently, the National Accountability Bureau (NAB) has been tasked with freezing 75 bank accounts linked to contractors, signaling a widening probe into potential financial irregularities.
With fare hikes and operational crises adding to the project’s woes, the BRT saga underscores the imperative for swift resolution amidst mounting economic and administrative turmoil.
