HYDERABAD: The Hyderabad Development Authority (HDA) is all set to pick a ‘management consulting firm’ for its mega project of ‘HDA City’ on 2,800 acres, which involves billions of rupees investment by the general public and state.

The project, the largest ever undertaken by the HDA, has been launched without getting the compulsory approval from its governing body that has not been in existence for some time.

The authority has completed almost all formalities like technical evaluation of the firm and it is now waiting for an order of the Sindh High Court in the matter. The court has asked the authority to continue its evaluation process but not award the contract for the work without informing it.

Investigations by Dawn revealed that the HDA governing body has not been in existence since the provincial government annulled the Musharraf-era devolution plan and revived the old commissioner system. The constitution of the governing body is necessary to approve such important decisions.

After the PPP came to power in 2008, then local bodies minister Agha Siraj Durrani made himself chairman of the governing body in 2009. Earlier, it was headed by the commissioner of Hyderabad division and after enforcement of Gen Musharraf’s devolution of power plan, district nazim Kanwar Naveed Jamil became its head.

The HDA has placed a ‘request for proposal’ in newspapers, inviting proposals from management firms having experience in management consultancy of real estate housing schemes and ‘other allied works’.

The work of such firm includes “launching, marketing, recovery of sale proceeds, record keeping and related affairs and other allied works of public housing scheme”.

The 2,800 acres are part of Gulistan-i-Sarmast housing scheme. Its first phase on 2,000 acres which the HDA undertook in 2009 is not yet complete. It is the very area where real estate tycoon Malik Riaz is building ‘Altaf Hussain University’ after purchasing 80 acres of land from the HDA for Rs400 million.

As far 2,800 acres, the cost of land has not yet been fixed by the Sindh government after the land was allotted to the HDA in the distant past.

Cost of 2,000 acres (Rs100 per sq yd) of Gulistan-i-Sarmast was fixed by the then district nazim before the scheme was launched in 2009. It was to be completed in three years in 2012 but work on it is still in progress.

The HDA received 5,000 acres from the Sindh government on the basis of deferred payment in early and the mid-80s, out of which the first phase of Gulistan-i-Sarmast was launched on 2,000 acres.

Another 200 acres were used for Kohsar extension for which the cost of land was fixed at Rs6 per sq yd.

Now, the HDA is embarking on a much bigger adventure on 2,800 acres and that too without getting approval of the governing body. It appears the management firm which will win the contract will have to get the cost of land fixed by the Sindh government and deal with all other ‘affairs’ too.

Inquiries show that five firms have been shortlisted after their technical evaluation. They are: M/s Rubicon builders and developers, West Point builders and developers, Seracom builders and developers, Marshal Homes and Iqbal Shaikh and Company. M/s Rubicon have been shortlisted for financial evaluation after their technical evaluation.

“We have heard that firm ‘of choice’ has been finalised which will win the work as HDA officers are waiting for a final high court order,” said a senior officer of HDA.

Some allottees of Gulistan-i- Sarmast have moved the court, challenging the new project on the ground that since the authority should first complete the existing project before launching another project on a much bigger sale.

The court then asked the HDA to continue their process and submit progress report to it, said the officer.

Hyderabad Commissioner Asif Hyder Shah, who is vice chairman of the governing body by virtue of his post, said that he had been writing for constitution of the body and convening its meeting as there were several issues with the HDA that required urgent attention.

“One thing is clear. We are not in the loop insofar as ‘HDA City’ project is concerned. It needs to be vetted by the governing body considering the high stakes of the general public and state,” he said, adding the HDA was doing it independently of all others.

The governing body is a forum which uses all the powers delegated to it by the component authority, the chief minister, under the Hyderabad Development Authority Act, 1976.

The Act came into life after the Musharraf’s devolution system was wrapped up. It is now headed by the minister instead of the district nazim but not a single meeting of the governing body has been held since the change in its nomenclature.

The ‘HDA City’ is unique in the history of HDA in that the authority has so far handled only Gulistan-i- Sarmast on 2,000 acres through a private marketing firm which was paid six per cent towards marketing charges. But the new project would be handled by the management firm independently.

“Request for proposal that appeared in newspapers carries a vague reference of ‘related affairs and other allied works of public housing scheme’ which needs to be explained. It is very important because the present HDA management is taking this decision in some haste in the absence of governing body,” said another senior officer.

HDA Director General Noor Mohammad Leghari, who is also Sindh secretary of livestock and fisheries, said: “We have done technical evaluation of firms and we are near the red line but we have not yet awarded the contract”.

He said: “We will have financial evaluation of firm a few days later as we are seeking schedule of payment from the Sindh government for cost of land”.

Mr Leghari holds the dual charge as the Sindh government has not been able since February 2014 to find a fully fledged DG for the authority who must be a cadre post officer as per directives of the Sindh High Court.

Earlier, the HDA was being run on an ad hoc basis by Iqbal Memon, sitting chief town planner, who relinquished the charge as a result of a court order.

“The governing body doesn’t exist at present. We can have post facto approval of the body for this project and we can request the government to nominate its members for vetting the project. But presently we will submit papers of technical evaluation to the court as our final decision on the project is subject to its order,” said Mr Leghari.

Published in Dawn, July 8th, 2015

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