Try, try again: Development of Sector I-15 soon

Work in the sector has been stalled at least three times, board member optimistic of better results.

ISLAMABAD:

With hopes that the fourth time will be the charm, the Capital Development Authority (CDA) has reinitiated development of the stalled Sector I-15.

If the ambitious plan actually reaches fruition, as many as 10,200 residential plots of different sizes will become available. This will also help bridge the gap between demand and supply of housing units in Islamabad.

Unofficial figures based on a 2011 Census Department housing survey and recently-calculated details of units provided by the CDA and private developers suggest that there is a shortfall of nearly 90,000 housing units in the capital.



Sector I-15, approved by the federal government in November 1992, almost 22 years ago, is basically meant to cater to low-income groups including government servants. The biggest available plot in the sector would be around 177 square metres.

On Wednesday, the CDA sought applications from construction firms for infrastructure development in the sector. According to an advertisement published in newspapers, firms with the relevant expertise have been asked to participate in the pre-qualification process, which will be held prior to final selection and the consequent award of work to the successful firm.

The work includes construction of road networks, storm drains, water supply and sewerage systems, and landscaping.

Under the original layout plan for the sector, the authority was supposed to develop 5,700 residential plots and some 8,000 residential flats for low income groups, but the idea was eventually dropped.

Almost a year ago, the CDA restructured the layout plan for the 722-acre sector and dropped the idea of vertical development --- the construction of multi-storey flats.

The revised land use analysis shows residential plots will be constructed on 245.87 acres (42 per cent of the total area), the main market on 37.66 acres, parks and playgrounds on 68.32 acres, shopping centres on 23.9 acres, educational institutes on 39.86 acres, a sewerage treatment plant on 7.4 acres, and roads on 299.5 acres.

Previous Failures

In 2006, the CDA first-intended to develop this sector on a design-cum-construction basis and a contract was awarded to a construction firm Al-Khan. Later, the firm defaulted and the contract was rescinded.

In 2008-09, a new bid was invited and a Chinese firm, CMEC, quoted a price of Rs54 billion against the CDA’s estimate of Rs14 billion. It was declined due to huge disparity.



A third attempt was made in June 2012. The CDA signed a memorandum of understanding (MoU) with a consortium of Chinese firms during a visit to China by former president Asif Ali Zardari.

However, the Public Procurement Regulatory Authority (PPRA) and the planning and finance divisions raised a technical objection to the MoU and it expired in December 2012.

CDA’s View

CDA Estate and Administration Member Amir Ali Ahmad was optimistic about the successful completion of this project.

He said that after hectic consultation among various CDA departments, previously over-calculated development cost of the sector had been rationalised and brought to Rs5 billion.

He said the initial funding for the project would be generated from the sale of residential plots, carved out from “leftover land” in the Sector I-15. He said the dates for this auction would be announced soon.

Ahmad said that in the face of the housing shortage in Islamabad, the incumbent management also plans to reinitiate development work in other stalled residential sectors such as Sector I-12.

Published in The Express Tribune, December 11^th, 2014.