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

Pakistan's first mega mass transit project -- Lahore Orange Line Metro Train is delayed from the stipulated time.

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

“The damages arising out of delay in the project include rate of liquidated damages at the rate of 0.2 per cent (minimum) to 10 per cent (maximum) of the 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 of delay,” reveals a document uploaded on an official website of the Punjab government.

“In case any dispute over the Loan Agreement is not resolved through friendly consultation, the same shall be referred to China International Economic and Trade Arbitration Commission (CIETAC) for arbitration,” it adds.