CDA had planned to construct 5,560 plots and 8,000 economy flats in three size categories. PHOTO: FILE
The Capital Development Authority (CDA) has continued to neglect the development of Sector I-15, despite it being approved by the federal government almost 21 years ago in November 1992.
The sector was targeted at serving the housing needs of Islamabad’s poor families, particularly those whose annual income falls under Rs150,000 per annum, and government employees working under Basic Pay Scales (BPS) 1 to 16.
History of Sector I-15
The sector covers 745 acres of land and was acquired in 1968-69 by the CDA, who had planned to construct a total of 5,560 plots and 8,000 economy flats in three size categories.
The sector’s infrastructure development work — estimated at a cost of Rs1.164 billion — was awarded to a local contractor on a turn-key basis in 2006. The contractor, however, failed to execute the project and his contract was consequently terminated by the CDA in April 2007. Thereafter, the CDA’s Planning Wing appointed consultants, who designed the construction of a main road and bridge linking Sector I-15 with I-16, eventually carried out by a local contractor.
After seeking approval from the government, the CDA called on competitive bidding from international firms to help with the project’s development, estimated overall at Rs36.059 billion.
In September 2009, five firms were shortlisted, of which only one — China National Machinery and Equipment Import and Export Corporation — had submitted a bid, amounting to US$785.5 million, for the project. The proposal was turned down because the rate was too high.
Later, a consortium of two Chinese firms, China Railway First Group (CRFG) and China Machinery Engineering Corporation offered to provide financial assistance in the form of an instalment plan through China Development Bank that would cover 85 percent of the project cost.
After objections were raised, a Memorandum of Understanding (MoU) signed between the CDA Chairman and CRFG representatives June 6, 2012 was considered null and void and contract was awarded under Public Procurement Regulatory Authority regulations.
Current Progress
CDA Chairman Tahir Shahbaz, speaking on the progress of stalled development work in Sector I-15, said the civic agency had managed to refund 3,350 people who had been allotted flats.
“We are planning to convert land dedicated to the construction of economy flats into similar-sized plots to accommodate those 4,650 people who didn’t take their money back from the CDA,” Shahbaz said.
He said the CDA was currently unable to subsidise the cost of flats, some of which are as high as Rs5 million, while prices were fixed at Rs1.4 million. He added that the sector had been cleared of all encroachments and efforts were being made to fast-track its development.
Published in The Express Tribune, April 14th, 2013.
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