The Federal Constitutional Court (FCC) has barred any judicial intervention in the NaiGaj Dam project until the dispute resolution mechanism in the original contract is exhausted. The ruling aims to prevent further delays on the long-stalled infrastructure project in Sindh's Dadu district. Main Developments An FCC bench comprising Chief Justice Aminud Din Khan and Justice Ali Baqar Najafi set aside a Sindh High Court judgment dated 27 May 2025 and orders from 6 October 2023 and 13 June 2025. The court directed WAPDA to consider any contractor request to resume and complete the project within 15 days, provided the request is submitted within one week of the judgment. The ruling mandates that any resumed work must strictly follow the original Contract Agreement, the arbitral award, related court decrees from 19 February 2021 and 31 July 2021, and a Memorandum of Understanding signed on 21 September 2021. WAPDA must assess remaining works and grant a reasonable extension of time under contractual provisions. Read also: Pakistan Slaps Five-Year Anti-Dumping Duties on Soda Ash from Türkiye, Kenya However, the court made clear that any extension will not entitle the contractor to further price escalation, additional compensation, or other financial benefits beyond what the arbitral award, court decrees, and MoU already finalized. Conversely, if the contractor fails to submit a request within the stipulated period or declines to execute the works, WAPDA may re-tender the remaining work on a risk-and-cost basis. Background The NaiGaj Dam project in Dadu district was launched in 2009 with an estimated cost of Rs 17 billion. Its objectives include supporting irrigation, conserving water, and rehabilitating Manchar Lake. Since inception, the project has suffered repeated delays from design changes, cost revisions, funding constraints, and disputes over revised financing arrangements. The court noted that the arbitral award was made under the Rules of the Court, and the Sindh High Court had passed a decree in those terms. The MoU executed for its implementation, the court said, must be respected and enforced unless grounds exist under the Arbitration Act 1940 or other applicable law. Why It Matters The ruling reinforces the principle of finality in arbitration and contract law, preventing courts from rewriting settled agreements. It also seeks to break a cycle of litigation that has stalled a major water infrastructure project for nearly two decades in a region dependent on irrigation and lake rehabilitation. The court criticized the High Court for assuming jurisdiction over a National Accountability Bureau inquiry into an allegedly forged bank guarantee, calling the impugned judgment a non-speaking, unreasoned order unsupported by evidence or law. What's Next WAPDA must now await a contractor request within one week of the judgment, then decide within 15 days. If the contractor does not comply, WAPDA can re-tender the remaining work. The ruling effectively clears a legal hurdle, but the project's fate hinges on whether the contractor resumes work under the strict terms laid out by the court.