The International Court of Arbitration has initiated the arbitration process for the Peshawar Bus Rapid Transit (BRT) project, issuing a notice to the Peshawar Development Authority (PDA), The News reported.

The court has asked both the contractor and the PDA to decide on the number of arbitrators for the case.

This project is projected to comprise three packages. The contractor for this project, JV Contractors, has demanded Rs57 billion in outstanding disputed amounts on only one package of the project.

If the claim is accepted, the national exchequer could face significant financial losses.

The total cost of the BRT project could exceed Rs120 billion, as the project consists of three packages and three additional parking plazas.

The contractor’s claim is based on several factors, including increased project scope frequent design changes, escalation and price adjustments, delayed payments, financial charges, retention amount and interest on outstanding amounts.

The International Court of Arbitration has asked the PDA to submit a reply within 30 days.

The court has also provided two options for the arbitral tribunal: a single arbitrator or a three-member tribunal.

The estimated fee for one arbitrator is $320,958, while the cost for three arbitrators is $758,086.

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