ISLAMABAD  - The Islamabad High Court here Friday rejected a plea for a stay order against construction of Munda Dam hydro-project and upheld the Federation's decision to award the contract to Water and Power Development Authority (WAPDA). The decision, written by Justice Mohammad Munir Paracha, was announced by the single bench of Chief Justice Sardar Mohammad Aslam. Munda Hydro-Power Company Ltd and AMZO an American company had filed a civil suit for US $ 1.2 billion against WAPDA, Private Power Infrastructure Board (PPIB) and the governments of Pakistan and NWFP. Senior Advocate Abdul Hafeez Pirzada, counsel for the companies, had apprised the Court that in May 2004, the Government of Pakistan issued Letter of Interest to a US Company, M/s Amzo Corporation LLC for carrying out the feasibility study. Later, a special project company, Munda Hydropower Company Ltd, was incorporated. After investing US $ 15 million, these companies completed  feasibility studies and submitted the same to the Ministry of Water and Power, he added. He said the Government instead of allowing the company to complete further stages of the construction unilaterally handed it over to WAPDA. Pirzada contended that the Power Policy 2002 contained assurances from the GOP in favour of foreign investors and the plaintiffs had legitimate expectation that all the stages of the project would be completed by them. Hence the WAPDA was unlawfully constructing the project, he added. Barrister Masroor Shah, counsel for the respondents argued that the plaintiff companies were not entitled to any relief under the Specific Relief Act, 1877. The Power Policy 2002 was only a guideline for investors and did not have any binding effect like a contract, he stressed. He produced judgment passed by the County Court of State of Maryland, USA whereby the partners of the plaintiff companies obtained injunctions against each other by alleging fraud and unfair means in the course of the execution of the project. He said that the country was in dire need of hydro power projects.