Islamabad - The Capital Development Authority (CDA) has announced to defer a scheduled commercial land auction after top real estate developers of the city which met the chairman CDA on Tuesday threatened to boycott the auction proceedings until their longstanding demands are met. The authority had earlier announced to hold open land auction on February 17.
A few days ago, through an advertisement, the real estate developers under the umbrella of Islamabad Developers Association (IDA) had sought Prime Minister Nawaz Sharif’s intervention into the issue, saying, “ the premier’s interference is indispensible to revive developmental and economic activities in the federal capital”.
Following publishing of advertisement the chairman CDA was directed to hold meeting with IDA representatives to address their genuine and just demands. “Almost every developer, who in past invested thousands of millions in Islamabad real estate market, complained about lethargic processing of their cases by Planning and Design wing of the CDA, and other dilly delaying tactics of wing’s official,” said a senior official of the authority.
Promised but till date missing facilities, including electricity, water supply and sewage lanes, gas, etc,  at previously auctioned plots, ill-planning of priced commercial plots without addressing aggravated parking issues in famous business centres, and delayed processing of plots files, once sold by the authority, are some among many just reservations shared by the developers with the chairman CDA.
While concluding meeting which lasted nearly two-hour, the chairman asked IDA to draft their proposals and apprehensions and submit it with the CDA, which will be discussed at another meeting scheduled on coming Monday.
The IDA suggested that CDA should revise its decades old planning bye-laws, as city needs have been changed over the period of time, incorporation of representation of developers in the CDA board, and one-window processing of commercial plots files valuing over Rs 1 billion.
A representative of IDA Masud Abbasi, who is also chief executive of APCO group, a private development firm, said the IDA categorically informed the chairman CDA that its members would not participate in any land auction of the CDA in future if IDA’s just demands are not met.
APCO group intends to erect an 18-storey multi-purpose tower named Park-One at a plot were previously Margalla Towers, which was collapsed in 2005 earthquake, was located. The firm had offered highest bid of Rs1.65 billion for the plot. But due to aforementioned issues the firm had yet to inaugurate construction work at the site. “The chairman not only acknowledged the issues developers have been confronting but also assured his all out support to resolve them,” Abbasi said.
He said at one hand the prime minister was inviting foreign investors to the country while on the other those already invested in Pakistan were running from pillar to post to minimize losses on their investment.
Recently the CDA presented a report before a parliamentary panel that says since July 2008 to June 2014 the authority auctioned a total of 2315 plots - 2171 residential and 144 commercial - at different developed sectors of Islamabad for Rs52.23 billion.
“Though sale of land remains the sole source of income for the CDA since long but authority’s response to investors is awful and condemnable,” said another member of IDA, who wished not to be named.
A news statement issued by the CDA says, “The chairman CDA directed concerned formations to take effective steps to address the genuine concerns of IDA. He assured IDA that their issues will not only be resolved on priority basis but the CDA will also take consolidated steps to ensure allied facilities at sold out plots.”