Rectifying flaws: CDA revises policy for auction of nursery plots

Suggestions on criteria for pre-qualifying firms by PAC incorporated.

ISLAMABAD:

Considering that nursery owners had been allotted plots in the capital without competitive bidding and the rate they were paying per acre had not been revised for years, an amended policy will be presented to the civic agency’s board for approval in the next few days to correct these deficiencies.     

“The new policy is complete in all respects and will be submitted to the Capital Development Authority (CDA) board for approval,” said CDA Member Environment Dr Kazim Niaz. The board had approved the policy and it was submitted to the Public Accounts Committee (PAC), which had made observations mostly about defining criteria for pre-qualifying firms. “PAC’s suggestions have been incorporated and the revised policy will be approved by the CDA board in its upcoming meeting,” Mr Niaz added.

According to the new policy document, available with The Express Tribune, “Security issues shall be given due consideration in earmarking and creation of new plots for nurseries.” Because of the new provision  the CDA Board turned down a summary prepared by the Planning Wing proposing 65 new nursery plots on the right of the Expressway.

“The summary was turned down owing to frequent VIP movement on the Expressway. The Planning Wing has been asked to carve out nursery plots beyond Koral Chowk on the Expressway,” said a senior official of the Environment Directorate. CDA owns 23 nursery plots across the capital.

In the early 70’s, CDA had leased out 23 nursery plots without advertising or competitive bidding. In the absence of a comprehensive policy, the CDA Board in 2009 extended the lease period of some eight nursery plots by 30 years for Rs4,000 per acre per annum. The decision caught the attention of the PAC in 2011 which directed CDA to revoke the new agreements with nursery owners and devise a comprehensive policy for auction of plots.

In future, nursery plots will be allotted after holding an auction among pre-qualified parties which will be scrutinised by a three-member committee headed by member environment. Applications will be solicited through advertisements in the press. The licence, to be issued by the Directorate of Municipal Administration, will be valid for 10 years and will have to be renewed every year, while the licence fee will increase 25 per cent every three years.

Construction of permanent structures on nursery plots will not be allowed except makeshift arrangements for greenhouses, stores, sheds and guardroom-cum-offices. The maximum covered area for temporary structures will be 300 square feet. The allotment may be cancelled if the owner fails to develop the nursery within a year of taking possession, who will have to put down a security deposit of Rs0.5 million.

Published in The Express Tribune, February 24^th, 2013.