25 October 2004	Monday	10 Ramazan 1425

KARACHI, Oct 24: The Defence Housing Authority has strongly defended the controversial development charges levied in the DHA's Phase VIII and in the Phase VII extension.

DHA Administrator Brig Maqsood Hussain told Dawn in an interview that there were only two options available to him. The DHA could "either let Phase VIII be as it is and let speculators make a killing or develop it fully. If Phase VIII remains undeveloped, speculators will continue to artificially manipulate prices. Genuine buyers, who matter most to the DHA, will continue to suffer. Speculation is affecting the economy as well."

Brig Hussain said the DHA was charging Rs1,000 per square yard in Phase VIII. "We have not asked any money for the Phase VIII extension. Why are we not charging any money for the extension? Somebody should ask this question. Because development charges amounting to Rs400 have already been levied in the extension. In Phase VII extension, we are charging Rs600 because Rs600 had already been taken as development charges. I could have levied Rs1,000 on Phase VII extension, Phase VIII and Phase VIII extension, but I didn't do this. I don't want people to pay extra money if they have already paid development charges."

Out of the Rs1,000 development charge, Rs500 would be paid to the Karachi Electric Supply Corporation without asking for additional money from individual plot owners. The DHA wants the KESC network to be underground, although the utility feels that it is an expensive option. "But we are determined that the Phase VIII network should be underground because of the environment factor. An overhead electricity network would last only five years."

Brig Hussain said the DHA was concentrating on the refurbishment of the existing infrastructure. The traffic problem had been identified, bearing in mind the fact that 50 per cent of the DHA was not yet fully developed. Traffic would at least double when all the phases of the DHA become fully developed and empty plots were built upon.

"With the coming up of a waterfront project for which we have signed a few agreements, we anticipate more traffic problems and a greater burden on amenities. As it is, in the evening the Beach Avenue faces a snarl-up. To ease traffic pressure on already burdened roads, we are developing Marine Drive which would go right up to the Boating Basin," the DHA chief said.

In August, the DHA inaugurated a $100-million cogeneration plant designed to generate 94 megawatts of electricity and three million gallons of desalinated water a day. The electricity produced by the plant would be sold to the KESC and the desalinated water would be provided to the residents of the DHA at affordable rates. The project is due to be completed within 22 months.

Brig Hussain pointed out that even the already built Phases I to IV were chronically short of potable water, receiving an average of 4.5 million gallons per day against the demand of eight million gallons per day.

The desalination project is the first of its kind in Pakistan, and it is hoped it will provide quality water at an affordable price to DHA residents.

Q: You have talked about speculators making a lot of money. But can the DHA act decisively against them?

A: The DHA has two sources of revenue: membership fee and transfer fee of plots. And yet I don't think that the DHA should try to make money by letting speculators manipulate prices of land. We laid down services in the DHA and hoped that these services would be utilized. If construction does not take place, the recovery of the expenditure incurred in laying down the services becomes very difficult.

Asked whether, in view of the fact that a great deal of money in circulation was black money, shouldn't the DHA ask for tax details at the time of transfer of plots or purchase of property, the brigadier said if this rule was enforced, it would affect prices in a big way and people would be hurt. "The only effect on the DHA would be a temporary drop in sale and purchase of property. That keeps happening anyway. But if the government enforces this law, we would implement it."

Q: But can you do it? Or in other words is it possible for you to do it?

A: I don't see any reason why we can't. But prices would fall. It is said that money should be kept in circulation. When you don't do that, people don't get the benefit. The common man wouldn't get the benefit.