ISLAMABAD: Public-private partnership is the only way out to save the Capital Development Authority (CDA) from bankruptcy. Otherwise the civic body will continue selling land to run its affairs till there is no land left with it.

This was stated by CDA’s Member Planning and Design Asad Kayani at a meeting of the Senate Standing Committee on Cabinet Secretariat on Thursday.

The discussion on the civic agency was diverted towards the matter after Member Finance Dr Fahad Haroon Aziz said the annual expenditure of the CDA was around Rs11 billion and if development projects were launched the civic agency would need around Rs19 billion. He said the CDA collected only Rs2 billion through taxes and its expenditures were met through the sale of plots. The day the CDA is left with no plots the civic agency will not be able to run its affairs, he added.

Mr Kayani said the only option was to start public-private partnership because it would increase the CDA’s revenue. But the CDA is not allowed to enter into a public-private partnership, he said.

Official tells Senate body that civic agency has no resources and depends on sale of plots to meet its expenditure

“In 2013 we started a public-private partnership and created plots on the Northern Strip (Sector E-11) but the Supreme Court took notice and directed the CDA to cancel the agreement as it (CDA) was not authorised to enter into a public-private partnership,” he said.

“We have written a number of letters to the government and requested it to allow us to start public-private partnership because only that is how we will be able to start projects under the build, operate and transfer (BOT) basis and become self-sufficient. However, the request has not been approved,” he said.

Senator Saifullah Khan Bangash said the CDA had been selling land and consuming the revenue. So one day the civic body will become bankrupt if it failed to take appropriate steps.

“In 2013, electricity to most of the CDA departments was disconnected because of nonpayment of bills and plots were not being sold. The then chairman CDA requested the business community to purchase plots as it needed around Rs130 million,” he said.

“It is unfortunate that projects started by CDA are delayed. The CDA announced the Park Enclave but even after many years it could not be completed as electricity, gas and water are not available there. On the other hand, Bahria Enclave was started after Park Enclave but it has been completed,” he said.

Senator Yousaf Badini said the CDA should develop one sector every year. Moreover, public-private partnership should also be started.

Committee chairman Senator Talha Mahmood said the ministry should look into the issue and ensure that the revenue of the CDA would be increased.

Capital Administration and Development Division (CADD) Secretary Nargis Ghaloo suggested that the proposal should be forwarded to her ministry so that she would look into it.

The member finance said once the federal government used to provide financial assistance and all major roads were constructed through grants but now the government had stopped supporting the civic agency.

“On the other hand, the CDA is directed to carry out development work even out of its domain. Currently, the government is asking us to construct the Islamabad Expressway from the airport to Rawat for which Rs12 billion would be required,” he said.

Published in Dawn, October 20th, 2017