ISLAMABAD: Federal auditors have pointed out that the inordinate delay in the completion of the Nilor Heights Project is depriving the civic authority of the envisaged benefits amounting to Rs14 billion.

“Audit is of the view that had the Authority completed the said project within implementation period of approved PC-I, then the Authority would have been able to get the benefit/revenue of Rs14.000 billion, as envisaged in PC-I,” read the audit report 2024-25 released by the Auditor General of Pakistan.

In 2021, the CDA started the multibillion project for the construction of apartments on its own land in Nilore. The apartments were supposed to be procured by its partner - Naya Pakistan Housing and Development Authority (NPHDA) - for its members.

However, sources said CDA did not receive any kind of financial help from NPHDA. That resulted in stoppage of the project halfway last year when the grey structure of 60 blocks had been completed.

The audit report said: “Moreover, financial obligations were not fulfilled by NAPHDA which resulted in envisaged benefits being delayed. The matter was discussed in DAC meeting held on 26.12.2024. DAC directed Fact Finding Inquiry at the level of Ministry of Interior and Cabinet Division. Compliance of DAC directives was not made. Audit recommends compliance of DAC directive.”

It said the project was required to be completed within 24 months by June 30, 2023 to achieve the approved targets and goals.

The project had two phases. Under the first phase, 2,400 small apartments (each measuring 779 square feet) had been built and only finishing work on them was pending. Under this phase, CDA constructed 2,400 apartments in 60 blocks of ground-plus-four storeys.

The project was initially named ‘Farash Town’ apartment scheme in 2021. The name was, however, changed to Nilore Height Project later on.

The 2,400 apartments were originally meant for low income groups. As per its original plan, the CDA was supposed to hand over 2,000 apartments to NPHDA for further allotments and 400 apartments were meant for allotment to slum dwellers in the city areas.

The second phase (whose foundation work was in progress before the project was halted last year) was meant for commercial auction and the CDA would construct state-of-the-art 1,876 apartments of various sizes up to 1441 square feet. A couple of years ago, the CDA had decided to auction 2,000 apartments to overseas Pakistanis at a price of $30,000 per apartment. The CDA floated an advertisement and received an overwhelming response from 6,000 applications. The balloting was supposed to be held in May 2023 but could not be held due to litigation.

Earlier, NPHDA also held a balloting to allot the under-construction apartments to people with low income.

When these people came to know that the CDA was now going to sell the apartments to overseas Pakistanis, they filed court cases and the balloting could not be held. The project is stalled for the last one year.

The audit report stated: “PC-I of the project for construction of 3960 apartments for Rs15,307.174 million was approved.

It was decided that vertical construction may be carried out on the land planned by CDA to settle the residents of displaced Katchi abadies at Ali Pur Farash, named as Model Urban Shelter Project (MUSP). Furthermore, it was decided that the construction work will be carried out by FWO on EPC mode/turn-key basis and CDA will be the executing agency. As per decision of Prime Minister, the FWO prepared a plan for construction of 3960 apartments along with commercial area, open spaces/parks, public building, graveyard, hospital, masjid, Grid Station and Roads/streets etc., over an area of 672.08 kanals.

“The project was required to be completed within 24 months up to 30.06.2023 to achieve the approved targets/goals.”

The audit observed that total funds of Rs8,295.190 million were released against approved cost of Rs13,270.097 million up to June 30, 2024, during 2021 to 2023-24 which was 62pc against the approved cost.

The audit report also carried CDA’s point of view as the civic agency replied that after observing non-fulfillment of due responsibility by NPHDA regarding the subsidy and mode of payment, the CDA Board in its second meeting held on Feb 16, 2022, decided to complete the project through its own resources. Later, the CDA Board decided to re-plan the CDA portion from ground-plus four to high-rise luxury flats to meet the modern requirement of market and earn revenue.

Furthermore, it was decided by the authority that the land allocated for commercial, public buildings will be outsourced/leased to be developed by the allottees as per approved design by CDA.

The management conceded that design changes had been made from G+4 to high-rise luxury apartments by the authority. Moreover, CDA stated that financial obligations were not fulfilled by NPHDA which resulted in the delay.

Published in Dawn, August 23rd, 2025