Maximising revenue: CDA board weighs proposals to diversify sources of income

[Salman]

ISLAMABAD:

While the Capital Development Authority (CDA) is planning to hold the fourth land auction to meet recurring expenditures in the third week of May, the civic agency’s board is considering several ideas in a bid to diversify its revenue stream.

The two-day auction of commercial and residential plots across the capital is planned for May 21 and 22. Around 32 commercial plots have been marked, but the CDA board has yet to finalise the number of plots to be auctioned.

CDA received bids worth Rs3.24 billion against seven commercial and 38 residential plots during the last auction held in March, while two auctions held in 2012 were not too successful, netting Rs2.8 billion and Rs1.09 billion respectively.

Meanwhile, CDA Member Estate Shaista Sohail said a draft of proposals to generate rental income had been submitted to the CDA board. “If approved, it will help CDA to generate recurring income to augment and diversify revenue.”

Marriage lawns

This proposal suggests establishment of marriage lawns, each catering to residents of four sectors. The facility will comprise of non-permanent detachable structures and will be offered on lease, with annual, bi-annual or monthly rent for a minimum period of five years. The lessee will be responsible for construction, maintenance of the site and day-to-day operations of the business,” Sohail said, adding that the only permanent structures on the marriage lawn would be a bridal suite, washrooms, a store, a temporary kitchen and a car park.

Specialised marts

The Member Estate said two sites for sale of construction material would be established at entry points, one at Kashmir Highway and the second at Islamabad Highway. “We have suggested to the CDA board that these sites should be offered to pre-qualified firms for 33 years.” A home décor mart will be set up along the Kashmir Highway.

Model auto workshops and showrooms

Two sites for showrooms for car manufacturers, used cars sale points and model workshops along with an auto mart will be leased for 33 years.

Cold storage and warehouses

According to Sohail, a sizeable chunk of land next to the CDA office in the I-11 vegetable market is occupied by encroachers to park trucks. “Under this plan the land will be retrieved and leased out to interested firms for the establishment of cold storages and warehouses,” she added.

Parking management system for Blue Area

A pilot project for setting up parking areas on both sides of Blue Area will be offered to interested firms on build, operate and transfer basis for 10 years.

If these plans are approved, the planning wing will be asked to earmark sites in light of Islamabad’s Master Plan.