April 23, 2026
Dream Project retendering process begins
Rawalpindi authorities have started the process to re-award contracts for two lots of the Dream Water Supply Project, with tenders due on April 29. The ADB-funded scheme is expected to add 12 million gallons per day from Chahan Dam by December 2027.
April 23, 2026

RAWALPINDI: The process to award fresh contracts for two components of the Dream Water Supply Project in Rawalpindi has begun, with tenders for the works scheduled to be opened on April 29.
The project is being financed through a loan from the Asian Development Bank (ADB), and the two contracts to be retendered are estimated at Rs20.4 billion. Once completed, the scheme is expected to add 12 million gallons of water per day to Rawalpindi from Chahan Dam.
The project is scheduled to be completed by December 2027. The additional supply will serve six densely populated union councils, including localities along Adiala Road where severe water shortages currently exist. The water will be delivered through a new distribution network linked to Chahan Dam.
Earlier contracts were cancelled
The previously awarded contracts for these two lots were cancelled after the Chief Minister's Inspection Team intervened, citing a lack of transparency and violations of procurement rules. The Dream Project Steering Committee later also approved the cancellation.
After the ADB issued a No Objection Letter, the retendering exercise was initiated under the Water and Sanitation Agency (WASA) and the Project Management Unit.
Irregularities and breaches of procurement rules in the award of contracts for Lots 2 and 3 had led to the removal of Project Director Hamza Salik and Deputy Project Director Zeeshan Gondal. They were replaced by Umar Javed as project director and Sohail Sandhu as deputy project director.
Work on other lots continues
Meanwhile, work on Lots 1 and 4 of the Dream Project has continued over the past year. These contracts were awarded at a cost of Rs13.55 billion.
Under those two lots, an additional 5 million gallons per day sourced from Rawal Dam and Khanpur Dam will be supplied around the clock to all sectors of Khayaban-e-Sir Syed.
The newly appointed Managing Director of WASA Rawalpindi, Azizullah Khan, is overseeing both the ongoing work under the existing contracts and the process for re-awarding the two cancelled lots.
The Dream Water Supply Project is intended to improve water availability in parts of Rawalpindi facing persistent shortages, with the Chahan Dam component expected to provide a major increase in supply once the retendered works are completed.
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