Capital to lease highway spaces to boost income

Project aims to generate Rs2 billion in annual CDA revenue

ISLAMABAD:

The Capital Development Authority (CDA) plans to lease space to international and local food chains on service roads along 14 major highways in Islamabad to generate permanent financial resources.

The decision is expected to be publicly announced soon. The project will be completed within one to two months, potentially earning CDA Rs2 billion annually.

Sources informed The Express Tribune that instead of relying on auctioning CDA-owned plots for financial resources, the focus has shifted to generating permanent income streams for the authority. Over the past decade, the authority not only invested its valuable plots into development projects but also sold properties worth billions of rupees under the "Ding Tapao" policy to cover expenses such as electricity bills. During this period, operations were managed on an ad-hoc basis.

Despite the potential to generate significant monthly revenue by developing its valuable plots, previous administrations did not pursue this. Consequently, the authority has relied heavily on selling plots as its main source of funds for development projects, employee salaries, and utility payments.

While the current administration has also proposed the auction of 35 prime plots in commercial areas, including the Blue Area, it recognises the need for sustainable income sources. Given the current downturn in the real estate sector, CDA risks selling its valuable plots at lower prices. Therefore, the authority is now focusing on establishing long-term revenue streams to stabilise its finances.

The current CDA administration initially announced that it would halt the auction of valuable plots, but within a month, the policy was reversed. Due to financial pressures, 35 plots were selected for auction. However, sources reveal that a new strategy is now in place to lease key locations on the service roads of Islamabad's 14 main highways to the private sector.

According to the proposed plan, international food chains will be invited to lease spaces on service roads to increase CDA's revenue. In addition to food outlets, motorway-style rest areas with seating will be developed along these service roads. These areas will offer both international food chains and high-quality local restaurants, with a focus on ensuring food quality.

Sources indicate that two sites near the popular tourist destination, Lake View, will be leased in the first phase, with an advertisement for bids expected in the coming days. Just a week ago, The Express Tribune reported on CDA's plan to auction 35 commercial plots. After the news reached the prime minister, he directed the administration to focus on generating permanent income sources. Consequently, the current administration has agreed to move forward with this leasing project.