Islamabad: China to give loan for Sector I-15 development

[Lahore_Real_Estate]

The Chinese government has agreed to finance the development of residential Sector I-15 and the Capital Development Authority is yet to decide whether the credit would be cleared in kind or through allotment of commercial plots in the federal capital.
“We are in negotiation with a Chinese state-owned firm for development of Sector I-15. The agreement nears to be signed. We are yet to decide whether the loan would be repaid in kind or by allotment of land,” CDA Chairman Imtiaz Inayat Elahi told this news agency.
Launching the residential sector I-15 in year 2005, the CDA had pledged to develop 5,560 plots and 8,000 flats in the sector and had also earned Rs 150 million from the sale of more or less 300,000 broachers.
He said after being exhausted from disputes over land acquisition, the CDA has now decided to acquire sectors through land-sharing formula engaging the private partners and various national and international firms are keen to execute such projects.
He said the Chinese government would provide loan to the government of Pakistan on CDA’s guarantee. However, the modus operandi of repayment is likely to be decided in the upcoming board meeting.
The chairman said as the project is loan-based, so its execution is not affordable for every firm. The matter would be finalized between the two respective governments.
Imtiaz Inayat Elahi said the technical bid offered by the Chinese firm has been examined while the financial bid is yet to be discussed in the board meeting. However; the difference in cost of the project is almost over.
“Earlier, they had come up with the project estimates based on foreign and hi-tech construction technology but we had asked them to revise it according to the indigenous material making it affordable for low-income people, the ultimate bearers of the cost,” said the chairman.
He said besides residential flats, the Chinese firm would also be responsible for the development of whole sector and the time period for the whole project is yet to be finalized.
According to a senior CDA official, getting disappointed about fulfilment of their dream to have own shelter in Islamabad, the allottees have got their amounts refunded from the civic agency.
“More than 2,000 allottees have got their amounts refunded.
The Authority has also specified Rs 800 million in its annual budget for fiscal 2010-11 for refund of allottees,” said the official.
The civic agency had offered around 3,388 plots measuring 150 square yards, 2132 plots of 216 square yards and 40 plots of 180 square yards, besides construction of flats on 1,300 square feet covered area.
After launch of residential sector, the authority had hired M/s Al-Khan Construction Company, owned by the brother of the then health minister, but the firm retracted the agreement following a dispute with the Authority over cost escalation of steel and construction material.
The official said four international firms have applied for pre-qualification including China National Machinery and Equipment, Shanghai Construction Group, China State Construction Engineering Corporation and JV Techno Paal Group, a UAE-based joint venture.