To bolster its financial resources for ongoing development projects, the Capital Development Authority (CDA) has announced plans for a new auction next month, covering commercial plots. This auction is anticipated to include a prime four-acre plot designated for a prestigious five-star hotel, following a lukewarm response in the last auction.
Previous Auction Falls Short of Expectations
The CDA had high hopes for the auction held last month, as it sought to secure billions of rupees for its ongoing development work. However, the results fell short of expectations, with only Rs12.9 billion generated during the four-day auction. The auction comprised nine commercial plots, two residential plots, and 14 half-marla (150 square feet each) plots.
New Auction Next Month Plans Unveiled
During a recent meeting held at the CDA conference room, Chairman Anwarul Haq instructed the estate wing to prepare an inventory of commercial plots available for the new auction next month. It was revealed that approximately 50 commercial plots of various sizes were available for sale. Nevertheless, Chairman Haq recommended that the CDA should curate a list of up to 25 plots for auction, focusing on quality rather than quantity.
High-Value Five-Star Hotel Plot in the Spotlight
The meeting also delved into the sale of a four-acre plot designated for the construction of a five-star hotel. Two such plots are situated near the Marriot Hotel, and they are expected to yield billions of rupees due to their prime location. However, the sale of these plots requires the government’s permission.
The CDA’s management decided to initiate discussions with the federal government to secure the necessary approvals. Following a favorable response from the government, the CDA intends to include one of these prime hotel plots in the upcoming auction scheduled for next month.
An official from the CDA estate wing confirmed, “We discussed the auction of the two five-star hotel plots. We had added one of the plots to the inventory during the last auction but had to remove it at the eleventh hour due to the requirement of prior permission from the federal government.” The official further stated that a letter has been sent to the federal government, awaiting their response. “As per the decisions in the meeting, the estate wing will pursue the previous letter,” he added.
CDA’s Financial Challenges and Development Priorities
As an autonomous body, the CDA faces the challenge of generating revenue to meet both its development and non-development expenditures. With over 15,000 employees and numerous pension cases, the need for financial resources is paramount.
The CDA is currently engaged in various critical development projects in the federal capital, including the expansion of the Islamabad Expressway, Park Road, the construction of a road from D-12 to E-11, and the Blue Area parking plaza.
Last month, the CDA was forced to suspend new development projects due to a shortage of funds. The work on projects like the 11th Avenue project and a link road for Margalla Avenue and the Peshawar Motorway remained stalled due to a lack of financial resources.
“We are hopeful that we will get the green light from the government to include the hotel plot in the auction. If that happens, our next auction hopefully will be a success,” expressed an official from the CDA, highlighting the importance of securing valuable revenue sources for continued development efforts in the capital.