LAHORE, Sept 3: Plot prices in the Avenue Housing Scheme of the Lahore Development Authority are being increased by a minimum of 60 per cent due to the award of development contract to the Frontier Works Organization at rates 49 per cent higher than the revised schedule without inviting tenders.

The FWO is not content even with the 49 per cent premium and is reported to be pressing for additional payments on account of POL charges and wages. A 60 per cent increase in prices of plots in the scheme is certain because the LDA governing body has approved upward revision of prices in its meeting held on Aug 17. The decision has, however, not been made public officially.

The price of a one-kanal plot will be increased by Rs324,000, from Rs540,000 to Rs864,000. The authority received Rs216,000 from the allottees with the applications and decided to receive the remaining Rs440,000 in six quarterly instalments of Rs54,000. The last instalment is due in December. The authority will now ask the allottees to pay six more quarterly instalments of Rs54,000.

District Nazim Mian Amer Mahmood, who continued criticizing former chief minister Mian Shahbaz Sharif for awarding Lahore roads rehabilitation project to the National Logistic Cell and FWO at rates 40 per cent higher than the previous schedule during Lahore District Council sessions and press conferences, presided over the LDA governing body as ex-officio chairman.

The governing body approved the increase in prices of plots after approval of a summary sent by the authority to Chief Minister Chaudhry Pervaiz Elahi in the light of decision to award the development contract to the FWO.

As many as 35 contractors offered their services for development of the scheme in response to pre-qualification notices. The FWO was one of the five contractors pre-qualified for the task. The contract was, however, awarded to the FWO without inviting bids from pre-qualified contractors.

Plot prices in the scheme proposed to be developed for government employees have increased not only due to award of the development contract to a contractor capable of dictating its own rates but also due to inordinate delay in commencement of development.

The delay has resulted in escalation of prices of building material and wages resulting in upward revision of schedule by the provincial government a few months back following refusal of the contractors to continue development works in accordance with the previous schedule. The FWO has been awarded the contract at rates 49 per cent higher than the revised schedule and 70 per cent higher than the previous schedule.

LDA Chairmen District Nazim Mian Amer Mahmood announced start of development from April 2003 but all that was done was to start pre-qualification of contractors early this year. Meanwhile, the FWO has not started development work till date despite the award of contract and is learnt to be preparing to sublet the contract to one of the four other contractors pre-qualified for execution of the project.

The authority has not only failed to start development of the scheme but also secure possession of the total area proposed to be included in it because of inordinate delay in disposal of cases by a senior member of the Board of Revenue.

Of around 17,000 kanals proposed to be included in the scheme, the authority has taken possession of more than 12,000 kanals. Private housing societies including the EME, Chiniot, Board of Revenue and Islamic scholars are trying to retain possession of over 5,000 kanals.

The policy for transfer of plots in the scheme has also not been announced till date despite Nazim's promise that it would be laid down soon after completion of the allotment process.

Nearly 20 per cent of the plots are reported to have been sold on the basis of power of attorney letters which cannot be registered on account of the ban imposed by the Executive District Officer (Revenue) on sale of land through power of attorney letters.