ISLAMABAD - A recent decision of the federal cabinet suggesting the Capital Development Authority to “resubmit draft of amendments in the Authority’s Ordinance 1960 with the federal cabinet as a legislative bill and not as an ordinance” has dashed the high hopes of the city managers regarding its passage, at least for the time being.
The proposed amendments draft — that would be resubmitted as a legislative bill rather an ordinance with the federal cabinet in the coming days as informed by a concerned official of the Authority — provides insertion of some new sub-sections in CDA Ordinance 1960. It basically aimed to empower the Authority to hold joint ventures with the private firms in terms of development of stalled and new residential sectors or any other project of importance. As per provisions of current Ordinance, the Authority could not go for joint venture with any private firm. The insertion of proposed Section 33C in CDA Ordinance would empower the Authority to withdraw from the already acquired land. Proposed Section 33C reads: “The Authority shall be at liberty to withdraw from the acquisition of any land, through issuance of a written notification at any time prior to taking possession, where the Authority has not paid compensation because of any reason or the Authority considers that the required land is no more required for the scheme, it was acquired for.”
“Currently CDA owes approximately Rs 36 billion on the account of land it acquired in past but not compensated the landowners. A huge chunk of this acquired land it of no use for CDA that is why we are trying to get rid of this debt,” commented an official.
While, when it comes to liberty to hold joint ventures, insertion of proposed Section 10A in CDA Ordinance provides the establishment of a “Public-Private Partnership Cell”. The cell would be consist of officers from within the CDA, other local bodies, agencies and may also include representative(s) from the Finance Department and independent technical and legal experts. This Cell shall identify suitable projects and prioritise these within its sector, appoint transaction advisors for project preparation and tendering, conduct a competitive tendering process, carryout bid(s) evaluation, negotiate and sign the agreement(s) after approval of Board and monitor and evaluate implementation and operations.
It also provides the establishment of a project implementation unit which would oversee the day to day implementation of the project. The city managers have sought the aforementioned amendments in its Ordinance on the grounds that the Authority does not have the financial resources to undertake development of new sectors and already owes huge amounts in respect of land acquired by it.
“The value of land in developed sectors continues to escalate leading to speculations, manipulation and inflation of prices by real estate agents and speculative investors which has caused great hardship for the genuine purchasers,” a solid reason stated by CDA behind this move.
While a recent ruling of the Supreme Court of Pakistan on the fate of a successful joint venture of the development of Northern Strip of Sector E-11 has barred the Authority to go for such joint venture as the practice is contrary to the current provisions of CDA Ordinance 1960.
“We are in a process to reshape the proposed amendments and would resubmit it with the federal cabinet as a legislative bill rather an ordinance as per directions of the federal cabinet,” an official said.
“Development by holding joint ventures with private developers/partners is the proven model across the world. But unfortunately, five decades ago when CDA Ordinance was prepared it was not made part of the rules,” Chairman CDA Engineer Farkhand Iqbal said.
“Apex court had struck E-11 joint venture on the basis of this lacuna in CDA Ordinance. But now there would be no hurdle in the authority’s way to develop stalled sectors,” he added.
Farkhand Iqbal said on one part the amendment would close the door of corruption while on other it would reduce the miseries of long-neglected affected peoples of several stalled sectors. “At first I would go to find partners to develop sectors G-12 and F-12,” Farkhand informed about CDA’s future strategy.
He said that holding of joint venture with private partners for infrastructure development project is the only way forward to resolve housing issues in the federal capital.