Plan to give Chinese firm affordable housing contract raises doubt within PTI ranks

Housing Division wanted to award contract to Chinese firm for construction of <br /> 5 million low-cost housing units

ISLAMABAD: The Housing and Works Division’s move to award a multibillion-rupee contract for the construction of five million affordable housing units for the low-income group to a Chinese firm has raised questions of transparency in the Pakistan Tehreek-e-Insaf (PTI) government.

Ministers for science and technology, and planning and development have raised questions of transparency in their comments on the proposed award of contract to a Chinese firm for building affordable housing units. Following their observations, the cabinet directed the Housing and Works Division to revisit draft of the proposed deal with the Chinese firm.

Sources told The Express Tribune that the Housing and Works Division had briefed the cabinet last month that China Gezhouba Group Company (CGGC) was interested in the government’s initiative of constructing five million affordable housing units for the low-income group in Pakistan.

A draft memorandum of understanding between the Ministry of Housing and Works and CGGC was forwarded to the Board of Investment (BOI). It examined the MoU thoroughly and supported the intent and the Law and Justice Division also vetted the draft MoU from the legal point of view.

The draft MoU between the Ministry of Housing and Works and CGGC was required to be approved by the cabinet. The Housing and Works Division informed the cabinet, chaired by Prime Minister Imran Khan, that a summary was submitted to seek its approval.

The summary was circulated among all cabinet members for their opinion. Twenty members of the cabinet endorsed the proposal of Housing and Works Division whereas reply from three members was awaited to date.

Earlier this week The Express Tribune had approached the Housing and Works Division for a version, which was awaited till the filing of this story.

Ministers for planning, development and special initiative, and science and technology also gave their observations on the proposal.

The planning minister said the proposal involved important questions of transparency as well as choice of appropriate technologies for low-cost housing. The matter should, therefore, be discussed in a formal meeting of the cabinet. The minister for science and technology said the housing policy announced earlier suggested that all contracts should be awarded through bidding. The offer to the Chinese firm was against the cabinet decision, he said. The summary was submitted to the prime minister with observations of the ministers. Keeping these observations in view, the prime minister directed officials that the case may be placed before the cabinet in its regular meeting for discussion.

In line with the directive, the summary was moved to the Cabinet Division for discussion and decision. During discussion, cabinet members questioned the prudence of signing MoU with one company, which would cast aspersions about the transparency of bidding process.

The sponsoring division stressed that the MoU with CGGC was primarily geared to bring in investment and transfer of technology in the housing sector for the construction of prefabricated houses.

The cabinet members pointed out that if it was so, then the MoU was not explicit in its objectives. The cabinet gave directives for revisiting the draft MoU following the observations made by the members regarding transparency in the execution of housing project. 

Published in The Express Tribune, March 8^th, 2020.

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