ISLAMABAD: The longstanding impasse between the Privatisation Commission and the Capital Development Authority (CDA) over the privatisation of Jinnah Convention Centre (JCC) was finally resolved on Thursday as it was agreed that a revised transaction structure will be formulated in consultation with the civic agency.

Minister for Privatisation Abid Hussain Bhayo held a detailed meeting with CDA Chairman Amer Ali Ahmad and both sides agreed to formulate a revised transaction structure from the transaction committee of the Privatisation Commission in consultation with the CDA, considering the environmental effects and other possibilities for turning around the loss-making entity into a profit making one.

In the real estate sector, JCC remains the only transaction yet to be completed. The PTI government had auctioned the Services International Hotel in Lahore and properties owned and controlled by the federal government.

The revision of transaction structure would involve carrying out new feasibility studies considering various factors keeping in view of the location of the centre.

Privatisation Commission agrees to formulate revised transaction structure in consultation with CDA

Speaking to the CDA chairman, the privatisation minister said: “We must move in manner to ensure transparency on the one hand and providing viable options for the potential investors on the other.”

During the meeting, the CDA chairman endorsed the output from Privatisation Commission and committed to assisting in all matters for the early resolution of issues delaying the privatisation of the centre.

The meeting was held in the backdrop of reservations of the CDA board regarding a few aspects of the transaction structure and a way forward to convert the loss-making entity into profit-making through a consultative process.

Following approval by the federal cabinet, the Privatisation Commission moved with the issuance of ‘expression of interest’ and 12 parties were pre-qualified. But the process could not move ahead on account of reservations of a couple of CDA board members on the conversion of the entire property from amenity to commercial.

The federal government intended to sell JCC through a competitive bidding process. The centre is located on 7.59 acres, including the built-up structure on 4.13 acres.

Though the federal cabinet had approved the privatisation of the centre, the CDA had objected to it on the ground that the existing footprint area should be kept intact. The board had maintained that the CDA regulations and bylaws should be made applicable.

The Privatisation Commission had turned down all objections raised by CDA, stating that the civic agency had no objection as the privatisation of the JCC had been approved by the cabinet along with the building bylaws for the transaction structure.

The commission had also stated that the price consideration of Rs1.14 billion had already been paid by the Ministry of Interior, and the plot no longer belonged to the CDA.

Following privatisation of the centre, investors would have the option to retain the current structure to develop a convention centre, hotel or office space or apartments.

The investor would also have the right to sell the built-up units of the property.

Jinnah Convention Centre, located on Srinagar Highway, was built in 1979. The building was handed over to the CDA in 2000 for administration and maintenance. In 2019, the CDA leased out the centre’s land to the interior ministry for a period of 99 years.

Published in Dawn, July 29th, 2022