Commercial land auction: CDA to get money in two months

ISLAMABAD:

The Capital Development Authority (CDA) is expected to receive payments for commercial plots it auctioned on Tuesday within two months, thanks to a revised payment plan.

The CDA auctioned ten commercial plots on Tuesday, but only approved the bids for seven plots in a Thursday board meeting. The sale of the plots is going to bring in Rs2.8 billion for the civic agency.

The revised payment schedule for commercial plots, which was changed by CDA’s finance wing prior to the commercial plots auction, means bidders will have to pay up in two months instead of six.

CDA spokesperson Ramzan Sajid confirmed the revised plan. Sajid said CDA would get 25% of each bid by Monday, November 26. The remaining 75% will be received in two equal instilments over two months, he said.

Prior to the change, bidders paid a 40% down payment and followed it up with two quarterly instilments. The five residential plot bids approved by the CDA board will still follow the old payment plan.

CDA is likely to revive its stalled development projects within two months with the revenue from the commercial plots, Sajid said. He said the short payment plan will help revive development activity in Blue Area.

Published in The Express Tribune, November 24^th, 2012.