29 January 2004	Thursday	06 Zilhaj 1424

ISLAMABAD, Jan 28: The World Bank (WB) will offer financial assistance to the Capital Development Authority (CDA) for the promotion of housing sector in the capital.

A five-member delegation of the World Bank headed by its urban and land specialist, Robin Rajack, held a meeting with the CDA chairman, Kamran Lashari, here on Wednesday.

The meeting discussed the situation regarding CDA's housing sector. It was observed that with financial support from the World Bank, the sector could be developed in the capital.

It was decided that proposals would be developed for the feasibility of initiating new housing projects. A study would be also be conducted in this connection.

According to the CDA estimates, the housing shortage in Islamabad is around 35,000 units while 15 residential sectors out of 46 residential have so far been developed. About 75,000 housing units have been constructed in the capital.

The CDA chairman apprised the delegation of the authority's financial position and said it was not possible to acquire and develop land with meagre financial resources.

He said the CDA was bound to sell the plots at market rates. He said the authority could initiate the housing schemes in close collaboration with the private sector.

The other members of the WB delegation were Autan Dobranogar, Samuel, Munzele Maimbo and Olivier Hassler. The CDA member (engineering), member (administration), member (planning), deputy director-general planning and deputy director- general works were also present during the meeting.

Meanwhile, the World Bank will provide financial assistance worth $200 million to the government for improvement of highways in the country. An agreement in this regards was signed by the World Bank acting country director, Abid Hassan, National Highway Authority chairman Maj-Gen Farukh Javed and secretary Economic Affairs Division Dr Waqar Masood here on Tuesday. The financial assistance will be used for improvement of about 2,700km-long highways. The project will be completed in five years.

CONSULTATIONS: The WB team also held extensive consultations with officials of the State Bank on housing finance reforms introduce by the government in the country. Official sources said, during the meetings the SBP officials expressed their desire for a national level housing finance project that could address constraints to development the sector.

The WB has also prepared an 'initial project concept note' which provides the objectives, rationale, components, potential risks for the development of housing sector in the country.

The sources said housing backlog in the country was estimated at 5.39 million units. There is a shortfall of 270,000 units per year while the potential market for housing finance is about Rs60 to Rs70 billion against the current annual lending of Rs2 billion.-APP/PPI