ISLAMABAD-An additional and irrational financial burden taken on their shoulders by the city managers forced the Capital Development Authority to sell its precious commercial land bank in an uncompetitive environment—leaving the city body in the loss of billions of rupees.
It is relevant to note here that the CDA, just after a gap of five months is conducting the second auction as in January this year, it had auctioned plots worth Rs41 billion (initially) and later on, that auction matured at Rs30 billion as some investors surrendered their bids.
The city managers have planned to fetch over Rs.20 billion through said auction however they could hardly reach to Rs.19.325 billion by selling 17 plots in three days long auction.
It is evident from the record that extraordinary liabilities have been created against the CDA due to multiple ongoing projects that were initiated on the directions of the federal government beyond going to the mandate of civic authority purely on political grounds.
As for instance, CDA has nothing to do with the operations of metro bus services as nowhere in the country such a facility is being run by any city development authority but there are 3 metro bus routes currently being financed by the city managers from its own kitty.
Meanwhile, the Bara Kahu Bypass project, which should be constructed by the National Highway Authority was also taken up by CDA through its own funding that created an extra burden of billions of rupees.
Similarly, projects like winding and improvement of IJP road, Margalla Avenue were also beyond the mandate of CDA as same will cater to the interprovincial traffic, whereas, the signal free Islamabad Expressway was initially planned to be funded through Public Sector Development Program but same was diverted towards the city body as well.
The present government also put an extra burden of about Rs.10 billion for the development works in the rural parts of the city, which also do not come directly under the domain of CDA.
Sources inside the CDA informed that due to the second auction after such a short interval, there was very limited competition seen on site and only 17 plots out of 45 were sold out.
According to details, the auctioned plots on the first day includes a plot measuring 700 square yards of F-7 Markaz against Rs.1.7 billion, plot measuring 711.11 square yards of D-12 Markaz against Rs898,843,040, plot measuring 177.7 square yards located in G-10 Markaz against Rs273,588,030 and plot measuring 666.6 square yards of I-8 Markaz at Rs1 billion and 3 crore. Moreover, a petrol pump plot in G-9/2 measuring 1227.76 square yards was auctioned for Rs848,389,070.
Plots auctioned on the second day includes, a plot measuring 4888.88 square yards of Blue Area against Rs.786,131,904, a petrol pump plot measuring 4444.44 square yards of H-9 against Rs.3,359,996,640, a plot measuring 133.33 square yards of class-III shopping centre of Sector G-11/3 against Rs.140,396,490, a plot measuring 133.33 square yards of class-III shopping centre against Rs. 110,663,900, a plot measuring 133.33 square yards of class-III shopping Centre of Sector D-12/3 against Rs.150,396,240, a plot measuring 533.33 square yards of Sector G-11/3 against Rs.535,463,320, a plot measuring 711.11 square yards of Sector D-12 against Rs. 753,776,600 and a plot measuring 177.77 square yards of G-10 Markaz against Rs.240,522,810
Meanwhile, on the second day of the auction, 3 agro plots have also been sold out that includes agro farm at Murree road against Rs.36 crore, farm at Tarlai Extension against Rs.9 crore and 60 lakhs and a farm at poultry and vegetable scheme in Sihala against Rs.13 crore and 66 lakhs.
However, the city managers could only auction a plot of petrol pump measuring 2222.22 square yards at Sector D-12 against Rs.85 crore on the third day of the auction.