LAHORE – The hidden clause of the Orange Line Metro Train will bleed Punjabgovernment as Punjab will have to pay damages of Rs 5 crore per day to theChinese government if it fails to complete the project.

Pakistan’s first mega mass transit project — Lahore Orange Line MetroTrain is delayed from the stipulated time.

Interestingly the official sources are still unaware of the actual dateafter which the Punjab government will be liable to pay huge damages to becalculated on a daily basis.

“The damages arising out of delay in the project include rate of liquidateddamages at the rate of 0.2 per cent (minimum) to 10 per cent (maximum) ofthe total contract price of the project’s civil work, local contractors’idling charges etc.

Thus, the accumulative damages will be Rs51 million (per day) in case ofdelay,” reveals a document uploaded on an official website of the Punjabgovernment.

“In case any dispute over the Loan Agreement is not resolved throughfriendly consultation, the same shall be referred to China InternationalEconomic and Trade Arbitration Commission (CIETAC) for arbitration,” itadds.