Local govt cake: CDA wants the best piece for itself

Proposed LG bill allows authority to retain revenue collection from advertisement sites.


Danish Hussain September 17, 2013
If the act is approved, the local government would be deprived of over half a billion rupees per annum — the advertisement revenue the authority is estimated to earn this year. PHOTO: FILE.

ISLAMABAD:


The idea that the capital’s civic agency should be run like a business is a popular one with the ruling government and the incumbent chairman of the authority as well.


This could be behind the incorporation of one of the several controversial clauses to the under-consideration Federal Capital Local Government Act 2013 that awaits formal approval of the federal cabinet.

The contentious clause pertaining to functions of the proposed Metropolitan Corporation under the Local Government Act states “The Corporation shall regulate affixing of sign-boards and advertisements except where this function is being performed by the Capital Development Authority (CDA).”

Almost all functions of CDA’s Directorate of Municipal Administration (DMA) will be devolved to the proposed corporation while the money-making part (of advertisements) would remain with CDA.



The major functions of the proposed corporation include implementation of municipal by-laws, registration of birth, death, marriages and divorces, operation and management of bazaars and graveyards, anti-encroachment, sanitation and solid waste operations, parks, playgrounds, open spaces, approval of taxes and fees, collection of approved taxes, among others.



If the act is approved, the local government would be deprived of over half a billion rupees per annum — the advertisement revenue the authority is estimated to earn this year.

“CDA is expected to generate around Rs600 million from all of its advertisements,” an official of CDA’s administration wing said, wishing anonymity.

Talking to The Express Tribune a senior CDA official expressed astonishment over the incorporation of the said clause in the proposed local government act.

“Under the rules and as per precedents, the local government owns the functions and relevant sources of income from development authorities”.

Documents available with The Express Tribune reveal that CDA, at present, has around 2,376 advertisement sites which include billboards, bridge panels, median poles, rooftop billboards, side poles, bus shelters, tri-vision, underpasses and pedestrian bridges, among others.

Out of the 2,376 sites, around 306 are at the Islamabad Expressway, 542 along Kashmir Highway, 303 along Margalla Road, 239 along IJP Road, 243 along 9th Avenue, 207 along Jinnah Avenue, 189 along 7th Avenue, while the rest are at Faisal Avenue, Murree/Club Road, and other areas.

The CDA, under its revenue generation plan, has also planned on erecting advertisement sites in residential and rural areas as well. Similarly, there is a plan of bridges-branding, as currently the pillars and lower portions of bridges are empty which can be branded to increase revenue.

Published in The Express Tribune, September 18th, 2013.

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