LAHORE - The LDA has formally handed over all road development projects to the Frontier Works Organisation (FWO), one day before the Eid, setting aside sheer opposition raised by LDA (Engineering Wing) and LDA contractor association These projects included road construction from Pindi Stop Maulana Shaukat Ali Road to Ghazi Chowk College Road and Madar-e-Millat Road to Quaid-e-Azam Town costing Rs 320 million, 45 meter wide road from Southern Bypass to Johar Town costing Rs 18 million, insides road of Johar Town including P, R and M blocks costing Rs 19 million, road situated in Quaid-e-Azam Town from Butt Chowk College Road to WASA Tanki Number 4 costing Rs 21 million, Main Boulevard Gulshan Ravi Multan Road to Bund Road, 20 meter wide Main Boulevard Sabzazar to Bund Road, Neelam Block Allama Iqbal Town to Multan Road  costing Rs 30 million and Canal Bank Road to Taj Pura Scheme Road costing 28 million It is pertinent to mention that the LDA will spend Rs 8 billion on development projects. Under which Rs 500 million are being spent for construction of flyovers, underpasses and roads under the Lahore Rehabilitation Programme in collaboration with the FWO in 2008-09. The authority will pay 16 per cent extra charges to the FWO in the name of qualitative and timely completion of development works knowing well the fact that FWO already failed to complete the development works in LDA avenue 1 scheme. As per rules, LDA is bound to pay 4 per cent of total charges regarding development works to selected contractor but it is irony that without amending the rules, the FWO will be paid 12 per cent charges more than the specific limit. With the extra charges, the LDA's budgetary deficit standing at Rs 2.5 billion will touch Rs 3.5 billion causing woes to its financial meltdown. Sources revealed that in the aftermath of contact with FWO, engineering branch (Urban Development Wing), which was earlier responsible for development works including road construction and rehabilitation in the city, has turned to be physically dysfunctional. LDA official on condition not to be named told The Nation that this was the branch recently restructured by spending heavy amount from national exchequer. Three directorates by appointing Director Area Development Scheme (ADS) I Malik Mushtaq, Director Area Development Scheme (ADS) II Mian Ijaz and Director Building I Saeed AKhtar were also established, he added He said that after the Wing becomes non-operational, funds used for its restructuring has gone in vain putting economic setback to the authority. Meanwhile, the employees from chief engineer to sub engineer are learnt to be sent into surplus pool. Sources said that LDA registered contractors are the other stakeholders which had faced financial damages. During the current fiscal year, they submitted money under pre-qualification procedure for different development works. With the contract signed with the FWO, pre-qualification amount will be wasted giving financial loss to the contractors. According to sources, authority formally inked an agreement with the FWO despite its financial inefficiencies, which has not only affected its institutional capacity but also weakened its financial position to undertake development projects. Insider disclosed that the LDA was facing internal criticism due to its agreement with FWO as latter could not perform up to the mark when awarded contract of first mega project of CDGL housing scheme LDA avenue 1. Sources disclosed that previous Punjab government had awarded contracts of all roads to the FWO LDA Avenue-I, meant only for the government servants and set 2006 as completion target. But the development works in the scheme came to grinding halt as FWO with its trained staff and machineries of international standard could not construct roads due to one or another reason. It may be recalled that the FWO was paid 49.49 per cent of the total development charges bypassing the rules and regulations. With the huge payment, sources informed, prices of plots had to be increased. "However, allotees are still awaiting plots' possession as the development works in LDA Avenue-I scheme have been facing inordinate delay over the last many years," sources said.    Sources said that the LDA contractor association was also building up pressure on the Punjab government to make some amendments in the agreement with the FWO. They cautioned that contract would not only deprive of all registered contractors of LDA from their livelihood but also inflict financial damages to the authority. LDA contractor association has warned to move the court and register its protest at CM house and Punjab Assembly.