ISLAMABAD: This year the Capital Development Authority (CDA) is expecting to earn Rs10 million from the auction of cattle market which will go under the hammer on Thursday.

Being a lucrative market, sellers from Punjab, Azad Kashmir and Khyber Pakhtunkhwa prefer Islamabad and bring around 50,000 sacrificial animals to the market every year.

Auction for the cattle market was scheduled to be held on September 16 but it had to be cancelled as bids were too low.

An official of the CDA, on condition of anonymity, said in 2012 the cattle market was auctioned for Rs4.5 million. In 2013, it fetched Rs10.5 million.

CDA expects to earn Rs10m from the auction

“This time the CDA management is expecting an even higher bid. On Tuesday as many as 30 bidders participated in the auction but the highest bid was just Rs5.5 million,” the civic body’s official said.

“The management had a feeling that the bidders had formed a cartel which was why it postponed the auction for two days,” he said.

Another CDA official, however, offered some genuine reasons for the low bid.

“Last year we allowed the contractor to charge Shamiana (a cloth canopy) rent from the sellers. Furthermore, they charged more for the stalls located on the roadside. But this year price of the stall has been fixed as Rs450 per square yard, which also includes the rent of the Shamiana,” the official said on condition of anonymity.

“Another reason for the low bid is the flood which hit southern Punjab, killing a large number of animals. As contractors were expecting fewer animals, they were reluctant to bid higher,” he said.

“This year the cattle market will be held near Carriage Factory instead of the main road which will not attract a good number of customers,” he said, adding that this was another stumbling block to get a higher bid.

“Because of all these issues it is feared that a large number of people might go to Rawalpindi or Taxila,” he said.

Replying to a question, the official said the CDA would provide water and electricity to the cattle market.

According to an official statement issued by the CDA, the bidding process would be supervised by a special committee comprising officers of different formations of the authority.

The site for the temporary cattle market would be bid out to the highest bidder.

The cattle market is expected to start operations from September 26 till October 5, says the press release.

The director, Directorate of Municipal Administration (DMA), Mohammad Hamza, confirmed to Dawn that the auction was postponed because of the low bid.

“It will be held on September 18 and CDA is expected to earn much more amount compared to the bid received on Tuesday,” he said.

Published in Dawn, September 18th, 2014