ISLAMABAD: The privatisation of Jinnah Convention Centre (JCC) hangs in the balance as the issues between the Privatisation Commis­sion and Capital Development Auth­ority remain unresolved. However, the commission has informed the CDA that the land no more belongs to it.

The Privatisation Commission, in a letter to the CDA chairman on Tuesday, responded to the authority’s observations and stated that there was no need to refer the matter again to the federal cabinet, which had already approved the transaction of JCC, and the CDA had already issued a ‘no-objection certificate’.

The commission rejected CDA’s position that “it auctions its own plots on a lease basis to successful bidders of commercial auctions, and that the instant lease of JCC may be transferred”, and informed the CDA chairman that since “the price consideration of Rs1.14 billion has been paid by the ministry of interior, the plot measuring 7.59 acres does not belong to the CDA anymore, and it belongs to the ministry of interior and the federal government”.

The CDA board has objected to the privatisation of JCC on the ground that the existing footprint area should be kept intact.

Privatisation Commission debates ongoing transactions

However, the Privatisation Commission stated that the total footprint covered area approved was 70 per cent of the plot size.

The federal cabinet has already approved privatisation of the JCC property spreading over 7.59 acres, including built-up structure of 4.13 acres land, through competitive building, and the option to retain the existing structure or not, has been provided to the new investor, the commission says in its letter sent to the CDA on November 9.

The Privatisation Commission says the CDA should realise the sensitivity of the entire process and its repercussions

where the pre-qualified parties are already shortlisted and any bottlenecks at this stage are likely to diminish the confidence of investors.

The CDA should not only reconsider the minutes of its board meeting but also abide by the decision of the federal cabinet and assist the commission in successful conclusion of the transaction.

Regarding the CDA board’s objection that parking or amenity area spreading over 3.46 acres of land should not be converted from amenity to commercial as per the CDA regulations, the Privatisation Commission said the CDA had informed the commission that the federal government, under a section of the CDA Ordinance 1960, had the authority to decide the change of land use.

Furthermore, the JCC property status has been converted from ‘amenity’ to ‘commercial’ with total area of 7.59 acres of land through the transaction structure approved by the Cabinet Committee on Privatisation in August last year, and ratified by the cabinet weeks later.

The CDA board maintained that the CDA regulations and bylaws should be made applicable. In response, the Privatisation Commission reminded the CDA of the NOC it had issued in October 2020 in respect of privatisation of JCC where it stated that there are no building bylaws formulated for the area wherein JCC falls. “CDA has no objection for the instant case, as the privatisation of JCC has been approved by the federal cabinet along with the building bylaws for the transaction structure,” the commission emphasised in its letter.

Meanwhile, the Privatisation Comm­ission at its meeting on Thursday discussed the ongoing transactions and the possible dates of their completion.

A press release issued by the commission said that for the privatisation of Heavy Electrical Complex, reference price would be placed before the PC board and subsequently to the Cabinet Committee on Privatisation and the federal cabinet.

Published in Dawn, November 12th, 2021