ISLAMABAD: Deviating from its core function of sector development, the Capital Development Authority (CDA) is going to launch a mega housing scheme on an area of 10,000 kanal through a joint venture.

This step of civic agency raises question marks as the primary function of the CDA is the development of sectors, but now it is going to hand over its 10,000 kanal to anyone for developing the largest housing scheme, namely Kuri Enclave, on plots sharing formula.

According to recently announced tenders, the CDA had sought expression of interest (EOI) from “reputable and renowned real estate developers, entities, and institutions, either individually or collectively as a consortium or a joint venture for the development and execution of the project of the state of the art residential complex/community, comprising of residential and commercial units plots (horizontal as well as vertical) along with all facilities and amenities connected therewith”.

Sources said that the CDA officers are “very eager to launch this housing scheme and for the last two weeks almost all main officers have been focusing to early launch this scheme”. There are rumours that the scheme is being launched to oblige a certain developer.

Spokesperson defends mega housing scheme, says it is in ‘larger interest’ of civic agency

CDA’s spokesperson Nauman Khalid vehemently rejected such claims and said that everything was being carried out as per rules and regulations. He said that the CDA after getting approval from its board and the federal government is going to launch this scheme through a joint venture.

The spokesperson said that this step was taken in the greater interest of the civic agency as the developer will carry out development and the CDA will get its due share. “The joint venture suits us as the investment will be made by the developer,” he said. To a query, he refuted all allegations that this scheme is being launched to oblige someone. “We have publically called the expression of interest from all real estate developers, so how anyone can say that we are facilitating someone? Everything is open and transparent,” he said.

Meanwhile, the CDA’s tender said that upon successful award of the project, the successful bidder shall exclusively be responsible for the successful and timely execution of the project and undertaking and performing tasks, actions, and works as may be required.

The entity shall commence and complete the development works of the project as per the approved schedule and plan. The tender further said that before the market launch of the project, all initial expenditures, investments, and finances shall be provided, incurred, and borne exclusively by the developer. However, the CDA stated that rights/ownership of land shall exclusively rest with the CDA.

A CDA director said that the housing project through a joint venture was something that would go in CDA’s favour. However, he said that there was a need for proper implementation of all conditions mentioned in the tender as CDA’s past record of getting timely benefits from joint ventures “is not good”.

He said that the CDA had made a joint venture with the army-owned Defense Housing Authority (DHA), but it had failed to get its due share from the said deal.

In in 2007, the CDA had made an agreement with DHA under which the civic agency handed over 1,500 kanals to the said authority and in return, the CDA was supposed to get more than 727 developed plots. 15 years on, the deal has yet to materialise.

When asked about the civic agency’s failure to get 727 plots from the DHA, the civic agency’s spokesperson said that he was not privy to the said agreement and he would check it out. However, another officer said that both authorities were in touch and this issue would soon be resolved.

Published in Dawn, February 14th, 2024