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ISLAMABAD: Owing to financial constraints, the Capital Development Authority (CDA) has decided not to initiate any new development projects, saying that its focus would remain on ongoing development projects which are a “priority” for the civic agency.
A senior official told Dawn that the civic agency has been facing financial constraints due to a decrease in revenue, and to ensure the smooth flow of ongoing projects, the agency has decided not to take on new projects for the time being.
The official said that billions of rupees of funding was required for the completion of the ongoing projects, which included the expansion of the Expressway, a road from D-12 to E-11, development of sectors I-12 and I-15, remaining allied works of Bhara Kahu bypass, such as the rehabilitation of Murree Road and a connecting road to link underpasses.
According to the CDA official, the civic agency was desperately looking forward to the second instalment of payment against the auction of commercial plots, held earlier this year, which would be expected by the end of next month.
Civic body to focus on ongoing schemes, looks forward to plots auction
Similarly, an upcoming auction in October-November may rake in a “handsome amount of revenue to ensure the smooth flow” of ongoing projects.
Decline in revenue
Another official said the CDA used to get revenue in terms of transfers of plots and approval of building plans, but due to high taxes, the real estate business was facing a decline, translating into less revenue for the civic agency. The official claimed that in case of good earnings in the next auction, the CDA might initiate a few projects of an ‘important nature’. Otherwise, the focus will remain on ongoing projects.
Sources said that three projects, Shaheen Chowk Interchange, Serena Interchange, and 11th Avenue Interchange, could be started any time as their file work was completed.
The projects are not being pursued by the CDA due to financial issues, the sources said, adding that as per PC-I, the 11th Avenue project may cost Rs19 billion and currently the civic agency was not in a position to start this mega project.
Similarly, another road project to connect G.T. Road and Peshawar Motorway (M1) is also a multi-billion project. At least Rs3 billion is required for civil works and Rs2 billion for land acquisition, officials said, adding that the process of land acquisition has not started.
Officials said that after getting funds from auctions, the CDA will focus on the Expressway project from PWD to GT Road. The CDA will make every effort to get it completed by March 2024, which is its deadline as per PC-I, they added.
Similarly, the ongoing project from D-12 to E-11 is also near completion and it will be completed by the end of October. The CDA management will try to wrap up this project after clearing the dues of the contractor.
The CDA officials said that amongst the new proposed project, the road from G.T. Road to Peshawar Motorway will be a priority of the CDA to squeeze maximum benefit from Margalla Avenue.