After Years of Delay, CDA Seeks Private Partner to Revive Rs15bn Housing Project
ISLAMABAD: The Capital Development Authority (CDA) has decided to formulate a strategy for reviving the stalled multibillion-rupee Nilor Heights Apartments project.
A source said CDA Chairman retired Lt. Sohail Ashraf has convened a special board meeting to discuss the fate of the project at the earliest as the structure is decaying.
“Recently, the CDA chairman showed his concerns, saying this project should be utilised for greater interest of CDA. He directed that a special meeting of the CDA board should be called to decide the fate of the project.”
The source said the chairman also directed that input from professional firms should be sought before deciding a way forward.
Recently, the federal cabinet approved a CDA summary ending the role of Naya Pakistan Housing Authority (NPHDA) in the project. “Now the CDA will decide the fate of this project. It is likely that we will go for a public-private partnership,” said an officer of the CDA.
On the other hand, the structure of the project has been decaying as work was stalled halfway. Launched in 2021, the project was required to be completed within 24 months – by June 30, 2023. However, work on it was halted halfway.
The project was launched by the CDA on its land and with own funding for its then partner, NPHDA, which was supposed to share the cost of the project and deliver apartments to its members.
However, NPHDA did not pay any amount to CDA that resulted in the halting of the project with completion of the grey structure of 60 blocks. Recently, the federal cabinet after ending the role of NPHDA authorised the civic agency to execute the project independently.
“This multibillion project is stalled and structure is decaying and there is an urgent need for its revival. CDA should go for a joint venture with anyone, but the project should be executed at the earliest,” said another official of CDA.
“We will place the matter before the CDA board. Besides providing land, the CDA has already spent billions of rupees on the project. We want urgent solution for revival of this stalled project. There are chances we will go for a public-private partnership mode,” the official said.
It may be noted that federal auditors had highlighted the project last year and stated in its 2024-25 report: “PC-I for construction of 3960 apartments for Rs15,307.174 million was approved. Total funds of Rs8,295.190 million were released against approved cost of Rs13,270.097 million up to June 30, 2024, during 2021 to 2023-24 which was 62pc against the approved cost.
“Audit is of the view that had the Authority completed the said project within implementation period of approved PC-I, then the Authority would have been able to get the benefit/revenue of Rs14.000 billion, as envisaged in PC-I.”
The audit report added: “Moreover, financial obligations were not fulfilled by NPHDA which resulted in envisaged benefits being delayed.”
The project had two phases. Under the first phase, 2,400 small apartments (each measuring 779 square feet) had been built and only finishing work on them was pending. Under this phase, CDA constructed 2,400 apartments in 60 blocks of ground-plus-four storeys.
The project was initially named ‘Farash Town’ apartment scheme in 2021. The name was, however, changed to Nilore Height Project later on.
The 2,400 apartments were originally meant for low income groups. As per its original plan, the CDA was supposed to hand over 2,000 apartments to NPHDA for further allotments and 400 apartments were meant for allotment to slum dwellers in the city areas.
The second phase (whose foundation work was in progress before the project was halted) was meant for commercial auction and the CDA would construct state-of-the-art 1,876 apartments of various sizes up to 1441 square feet. A few years ago, the CDA decided to auction 2,000 apartments to overseas Pakistanis at a price of $30,000 per apartment. The civic agency floated an advertisement and received an overwhelming response from 6,000 applications. The balloting was supposed to be held in May 2023, but could not be held due to litigation.
Earlier, NPHDA also held a balloting to allot the under-construction apartments to people with low income.