Islamabad-Peshawar Motorway (M-1) Project: NHA team leaves for Turkey to encash $49 million bank guarantees

The National Highway Authority (NHA) is planning to encash the bank guarantees of $49 million from various Turkish banks against M/s Bayinder, Turkish Construction Company, which failed to complete the Islamabad-Peshawar Motorway (M-1) project.
A two-member team from the NHA comprising Major General Farrukh Javed (Retd), former NHA Chairman, and Colonel Azeem (Retd) has left for Turkey to complete the proceedings for the encashment of bank guarantees, informed sources told Business Recorder here on Monday.
It is pertinent to note that the International Centre for the Settlement of Investment Disputes (ICSID), in its judgement dismissed the contractor's claims and paved the way for the NHA to encash its bank guarantees worth US $49 million. Sources said the encashment of bank guarantees became possible after an international arbitration tribunal on August 27 dismissed Bayinder's claims of US $756 million against the government of Pakistan.
Sources further said the National Highway Authority had terminated in 2001 the contract of M/s Bayinder, the then main contractor of Islamabad-Peshawar Motorway (M-1), after it failed to complete the project within the contract period. When the contract was terminated, work on major sections of the Motorway remained incomplete, sources maintained.
After the termination, the contractor took the case to an international arbitration tribunal and submitted a claim of US $756 million against the government of Pakistan. After a legal battle spanning over seven years, the tribunal gave its decision in favour of Pakistan. The verdict also happens to be the biggest ever achievement for the government as far as bilateral investment disputes are concerned.