Court Axes Hanzel Power Contract, Forfeits Guarantees as 20 MW Project Sits at 5% Completion After Four Years

The Gilgit-Baltistan Chief Court has terminated a multi-billion rupee hydel power contract for the 20 MW Hanzel Power project, four years after its inception. The FWO-CNEEC joint venture, responsible for the project, had only completed 5% of the work. The court ruled that the joint venture used a 'capacity-enhancement ruse' to avoid fulfilling a deliberately under-bid agreement, leading to the forfeiture of project guarantees. This decision marks a significant judicial intervention in Gilgit-Baltistan’s infrastructure history, addressing issues of contractual non-performance and alleged deceit in large-scale public works.