PESHAWAR, Nov 13: Work on the multi-billion Regi Lalma housing project has been stopped after a group, having a land dispute with the NWFP government, expelled contractors and staff of the executing agency from the site.

“There are a number of factors hampering work on the housing scheme and the provincial government seems to have lost interest to streamline the project,” a senior official told Dawn.

He said that the government had been informed about lawlessness in the area, but no action had been taken against criminals.

Officials said that a group of criminals belonging to the Regi area and the adjacent Khyber Agency had paralysed the government machinery and forced the contractors to leave the site.

Sources said that City Development and Municipal Department (CD&MD), the executing agency, had decided that contractors and staff would not resume work on the project unless the government took foolproof security measures in the area.

They said that the police department had yet to entertain a request of the CD&MD to provide security to the staff and the contractors.

“We have informed the chief minister about the situation. We have talked to the chief secretary, the police chief and sought help from all the quarters concerned, but there is no response yet,” said an official said requesting anonymity.

City District Nazim Haji Ghulam Ali termed the Regi project a ‘complicated’ issue, saying that consolidated efforts were needed to resolve it permanently.

He said the government had recently distributed Rs80 million among the so-called land owners and presently they (locals) again renewed their demands.

The sources said that the government had suffered over Rs1 billion losses owing to delay in the work mainly caused by law and order situation.

Regi Lalma Housing scheme sprawling over 4,616 acres comprises five major zones. Work on the project was started three years ago and had to be completed by the year 2007.

Estimated cost of the project, built on the outskirts of the provincial capital, is Rs7.164 billion. More than 20,000 plots had been allotted to 42 cooperative societies including employees of the Pakistan Air Force and other departments.

The officials said that almost 20 per cent civil work in the scheme including construction of major roads, drainage system and plantation had been done.

They said that majority of the people belonging to the Regi area and tribal area of Khyber Agency had been paid land price. However, few tribesmen claimed ownership and the government was negotiating with them through the political administration of the agency.

It is learnt that the CD&MD had provided Rs10 million to the political authorities in the Khyber Agency as a token money to pay to tribesmen who claimed land possession in the Regi scheme, but the administration had yet to take any initiative.

The sources said that a month ago a group of gangsters from the Regi area armed with rocket propelled launchers and machine guns forced the contractors and CD&MD staff to stop work and leave the area. The Regi and its adjacent areas are known for criminal activities and police have failed to eliminate the lawlessness from the area.

The officials said that after suspending the work, the CD&MD had immediately approached the provincial government to provide additional police and Frontier Constabulary personnel to resume construction activities. However, no action had been taken yet.

Capital City Police chief Habibullah Khan said that the police had evolved a line of action to expel criminals from the area. But, a senior official disputed his claim, saying that majority of the police personnel had been sent to the quake-hit areas.