ISLAMABAD: The federal cabinet on Monday allowed the Capital Development Authority (CDA) to enter into business deals with the private sector.

At a meeting, presided over by Prime Minister Nawaz Sharif, the cabinet principally approved an amendment to CDA Ordinance 1960 to allow the civic body to initiate projects under the public-private partnership.

However, there are also chances that Islamabad would fall under the control of the real estate builders, strong lobbies, and manipulators might gain sound footing in the civic body.

Incidentally, joint venture projects earlier initiated by the CDA were disowned by the incumbent management owing to accusations of malpractices.

“The three projects of recent past in which the private sectors were encouraged to invest, earn and pay to the CDA were the Diplomatic Shuttle Service, the establishment of Centaurus and Grand Hayat Hotel,” said an official of the estate department.

“Like the former Margalla Towers, these two mega building projects had special relaxations in the schedule of payments. The CDA had allowed them to earn first and pay later.”

As the clarifications related to the past deals by CDA continued to be sought, Chairman CDA Maroof Afzal informed several parliamentary committees, including the Public Accounts Committee (PAC), that the contract for the shuttle service had been terminated and a new one was being prepared with better terms for the CDA.

However, an official in the CDA said the authority had failed to keep a check on the concession made by officers dealing with private real estate developers.

“Many of these were executed by a senior official of the Planning Wing which even led to the delay in Park Enclave. But nothing has been done by the civic body,” the official added.

The approval by the prime minister was granted after the CDA chairman briefed the cabinet on the prospects of public-private partnership for carrying out development projects.

The cabinet was informed that the proposed option to enter into the public-private partnership deals would help overcome financial constraints faced by the CDA.

“But these are not sustainable sources of income for such a huge organisation with around Rs600 million monthly fixed expenditures,” said an official of the planning wing. “But the amendment was needed as the scenario in Islamabad has changed compared to the 1960s.”

The need for the amendment came to limelight after the Supreme Court of Pakistan took suo motu notice and later cancelled a joint venture between the CDA and a private company in Sector E/11.

The CDA had entered into the joint venture with the cooperative housing society for the development of 54 acres of land in 2008. But the apex court took notice of the matter in 2009.

The court ruled that there was no room for the public-private partnership in the CDA Ordinance. Therefore, it observed, an amendment to the ordinance was required.

“Apart from the real estate development, the CDA also needs a joint venture with the private sector in ensuring cleanliness in the city,” said Ramzan Sajid, the spokesman for the civic agency. He said sanitation was becoming an issue as the city was expanding.

Published in Dawn, February 24th, 2015

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