Cutting losses: CDA forced to abort plan to rent out Pak-China Centre

Chinese envoy conveyed reservations over converting symbolic gift into business.


Danish Hussain May 19, 2013
Chinese envoy conveyed reservations over converting symbolic gift into business. PHOTO: FILE.

ISLAMABAD:


The Chinese government, disturbed over one of the financially-strapped Capital Development Authority’s (CDA) latest money-making schemes, has asked it to shelve a plan to rent out the Pak-China Friendship Centre.


The building was financed by the Chinese government as a symbol of long-standing ties between the neighbouring countries.

When Chinese Ambassador Liu Jian came to know of CDA’s plan to rent out the Rs2.5 billion “symbol of friendship”, he immediately conveyed his government’s reservations, according to a senior CDA official.

After two consecutive meetings at the President House and the foreign secretary’s office, the CDA aborted the bidding process, which had begun a few weeks back. The CDA had sought bids from interested firms to rent out the 800-seat main auditorium in the first phase. The lowest bid submitted by a local firm was Rs3.3 million per month. “The bidding process has been called off, but I don’t know the exact reasons,” said CDA Member Engineering Sanaullah Aman. He refused to comment further over the issue.

However, well-placed sources in the agency said in a recent meeting at the office of Foreign Secretary Jalil Abbas Jilani, which was attended by representatives of the Cabinet Division, CDA, National Heritage Ministry, and the Chinese envoy suggested handing over operational control and maintenance responsibilities to a Chinese petroleum company.



However, CDA Chairman Tahir Shahbaz told The Express Tribune, “It was unanimously decided in the meeting that Pakistan would collaborate with the Chinese government rather than a Chinese business entity.” The Chinese ambassador put forward a set of proposals clearly defining the terms and conditions on which the facility should be run after consulting his government. Chinese Premier Li Keqiang is scheduled to visit Islamabad this month and we hope to make some progress over the issue during his visit, he added. Shahbaz said a committee which includes the foreign and cabinet secretaries along with himself, had been formulated to settle the issue.

Another senior CDA official requesting anonymity said it was conveyed during the meeting that Pakistan did not want a Chinese firm to run the facility on a commercial basis.

“The CDA has no issue if China maintains the facility, but we want to manage it,” said the official, in what appears to be a classic case of having your cake and eating it too.

A few months ago, after consulting the Foreign Office, the CDA turned down a similar request by the Chinese government which would have handed over the facility to a Chinese firm on a no-profit no-loss basis.

Foreign Office spokesman Aizaz Ahmad Chaudhry did not attend his cell phone despite repeated attempts. However, in a text message, he wrote, “We are discussing different arrangements with our Chinese friends to optimally utilise the facility. The objective is to have more people-to-people interaction.”

Pak-China Friendship Centre was inaugurated by former premiers Wen Jiabao and Yousaf Raza Gilani in 2010. It soon became a white elephant for the CDA, which maintains and manages its affairs.

The three-storey centre houses an 800-seat auditorium, exhibition centre, conference rooms, banquet halls, dance and art centre, reception halls, 60 five-star residential accommodations with a coffee shop, and a car park for 600 vehicles. The centre is spread over 12 acres, which were gifted by CDA.

Published in The Express Tribune, May 19th, 2013.

COMMENTS (1)

Sanam | 10 years ago | Reply

Friends forever??? :-P

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