MUZAFFARABAD, Oct 5: The long-awaited Muzaffarabad City Development Project (MCDP) may hit another controversy as the Earthquake Reconstruction and Rehabilitation Authority (Erra) is alleged to have decided to apportion its cost to two other earthquake-affected towns of Azad Jammu and Kashmir.

Development Authority Muzaffarabad chairman Zahid Amin here on Sunday claimed that Erra had decided to shelve most of the 94 schemes to be initiated under the umbrella of MCDP and asked the DAM to re-determine its priorities in this regard. "The MCDP funds are exclusively meant for reconstruction and development of Muzaffarabad. But ironically Erra is contemplating apportioning those funds among Muzaffarabad, Bagh and Rawalakot districts," Mr Amin said.

The cost of MCDP, as announced by Erra from time to time, is $361 million, of which $300 million is Chinese preferential buyers' credit and the rest is Pakistan government's counterpart funding.

The volume of Bagh City Development Project is Rs7349.76 million, all of which is funded by government of Pakistan, whereas the size of Rawalakot City Development Project is Rs8202.6 million, which includes a Saudi loan of $70 million.

All these three projects, according to official sources, have been approved by the Executive Committee of the National Economic Council (Ecnec) in 2007. However, none of the three could be initiated as yet.

Implementation of MCDP was delayed due to differences with the Chinese construction companies regarding the overhead charges and the matter was awaiting decision at the Erra council headed by Prime Minister Syed Yousuf Raza Gilani.

At one point of time, Erra had started giving indications that instead of accepting the "exorbitant overhead charges" by the Chinese companies it would prefer reconstruction of Muzaffarabad from internal resources, though at a much reduced volume.

However, in view of the likely unrest in Muzaffarabad, Prime Minister Gilani had constituted a committee headed by federal minister Qamaruz Zaman Kaira to look into the matter and in accordance with its recommendations had accorded approval on September 23 for execution of MCDP through the Chinese companies. According to official sources, the Chinese companies had agreed to bring down the ratio of overhead charges to 25 per cent.

However, a commercial contract between Erra and the Chinese companies was yet to be signed although official circles here claimed that MCDP would be formally launched by Prime Minister Gilani on the third anniversary of the devastating quake here on Wednesday (October 8).

Scepticism about the timely execution apart, reports about apportionment of MCDP funds ($150 million for Muzaffarabad and $150 million for Bagh and Rawalakot) had further discomforted the residents of Muzaffarabad.

"The apportionment of MCDP funds will be great injustice to the people of Muzaffarabad who have already been made to wait for three long years for the (commencement of) reconstruction of their ravaged town," Mr Amin said.

He contended that it would also badly affect the town's original master plan which had been prepared by the Japanese experts after extensive studies and surveys.

The shift in Erra's strategy was a conspiracy to pit the people of three AJK districts against each other, Mr Amin said, adding people should be told that where the whopping Rs16 million funds allocated for reconstruction of Bagh and Rawalakot were to be diverted.

According to him, hundreds of people were still living in hazardous zones but the number of satellite towns to be developed to rehabilitate such families had been scaled down from six to one.

"How can you accommodate a large number from hazardous zones in only one satellite town," he questioned. He called upon Prime Minister Gilani not to rely on "hackneyed official briefing" on October 8 and instead listen to the general public to have a clear idea of their plight and expectations.