PESHAWAR, April 9: Developmental cost of the under construction Regi Lalma Model Town scheme has escalated from Rs7 to Rs15 billion owing to the law and order situation, land dispute and lack of interest on the part of the government, sources say.

Officials said that civil work in two out of five zones of the township had been completed so far and were ready to be handed over to the owners while construction work in the remaining three zones had not been started due to land dispute between the provincial government and Kokikhel tribesmen of the adjacent Khyber tribal region.

“There are numerous reasons which caused delay in the completion of the multi-billion housing project. But major hurdle is land dispute between the government and the tribesmen that needs to be resolved immediately,” said a senior official.

He told Dawn that construction cost of the project had now escalated from Rs7 billion to Rs15 billion and it could increase further. “Unless governor and chief minister do not take initiative, the dispute can not be resolved,” he said.

Under the PC-I, approved in 1998, the project was supposed to be completed in 2003. The housing scheme spreading over 4,616 acres comprises five major zones.

Estimated cost of the project, built on the outskirts of the provincial capital, was Rs7.164 billion and more than 20,000 plots had been allotted to 42 cooperative societies. Work on the project was started in 2002 and had to be completed by the year 2007.

Civil work including sewerage lines, water supply and roads had been completed in zone three and four, but gas and electricity had not been provided so far. Officials said that provincial government had paid an amount of Rs190 million to Peshawar Electric Supply Company (Pesco) for the construction of grid station to provide electricity to these sectors.

Estimated cost of the grid station is Rs1 billion and Wapda would bear 80 per cent cost of the grid station.

Officials in the City Development and Municipal Department (CDMD), the executing agency, said that two zones were ready to handover to the owners.

However, work in the remaining three zones -- one, two and five -- had yet to be started because of the dispute between the provincial government and Kokikhel tribesmen of the adjacent Khyber tribal region. Tribesmen had claimed ownership of the land and did not allow CDMD to start construction work in the remaining three zones.

Officials said that the Khyber Agency political administration was reluctant to take action against the tribesmen who allegedly occupied the land. “Political administration is reluctant to take action against the tribesmen while on the other hand provincial government and the city district government did not initiate sincere efforts to end occupation of the tribesmen,” sources said.

Another hurdle in the completion of the Regi Lalma Housing project was the construction of approach road from main Jamrud Road to the housing scheme. Officials said that despite an agreement military authorities had yet to provide land for the construction of the approach road.

The department requires some 70 acres of the military for constructing 2.7 kilometres road. Under the agreement CDMD would provide plots to the army in the housing scheme in lieu of providing land for the road. Sources said that case regarding provision of land to the provincial government had been referred to the ministry of defense.