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Financial crunch: CDA projects likely to run into problems - Naveed Yaseen - 08-29-2009 07:05 AM
* Authority shelves construction of 11th Avenue, CDA Headquarters and launching of Rapid Mass Transit System
By Fazal Sher
ISLAMABAD: The ongoing development projects in the city could run into problems sooner or later as the Capital Development Authority (CDA) is facing serious financial crunch.
Sources told Daily Times on Friday that CDA was reportedly so strapped of cash that it has decided to release little funds for its ongoing development projects. The authority has taken this decision as it is left with just only Rs 1 billion after using most of its reserve funds and the money generated from plots’ sale during different auctions, they said.
They said this decision would badly affect the ongoing projects such as construction of Zero Point Interchange, construction of Lethrar Road, Development of F-9 Park, Development of Sector D-12, Culture Complex at Shahkarparian and upgradation of Margazar Zoo. “It would not only delay completion of the projects but also create quality problems,” said the sources.
Sources said the civic body had also shelved its projects, which were in the pipeline, including construction of 11th Avenue, launching of Rapid Mass Transit System and construction of CDA Headquarters.
DG: CDA Director General (DG) Civic Management and Public Relations Mustafain Kazmi talking to Daily Times said though the authority was facing shortage of funds, it would not stop or affect the ongoing developments projects. “ CDA is releasing funds to all contractors of the ongoing projects and therefore all these projects would be completed in its stipulated time,” he said.
He said CDA had funds to complete the ongoing projects. However, he said the civic body would hold plots’ auction after Ramazan to generate more funds. “CDA would launch new projects on priorities basis, but delay in launching of new projects does not mean that CDA is facing huge financial crisis”, he said.
CDA Chairman Imtiaz Inayat Elahi has said they would not prefer cosmetic development in future but launch projects on priority basis, said Kazmi, adding, CDA is now keenly focusing on sectors developments to solve residential problems in the city and to give possession of plots to allottees.
http://www.dailytimes.com.pk/default.asp?page=2009\08\29\story_29-8-2009_pg11_1