A project to develop a tourist spot at Bundle Island by a Saudi firm at a cost of 300 million dollars has hit snags as no progress has been made since the signing of the memorandum of understanding (MoU) in March.
This island near Creek Club came in limelight when the Saudi Engineering Group International signed a MoU with the City District Government Karachi (CDGK) in March to develop a resort at the said place.
The salient features of the project include the establishment of a seven-star hotel, water park, safari, health club, animal rides, courtyard, aquariums, bowling and ice skating, boat rides, guest marina, restaurants, hospital, entertainment centres, etc.
However, despite the lapse of about six months since the signing of MoU, no headway has been made to finalise the modalities, required before signing of final agreement.
Well placed sources in city government told newsmen that again a project aimed at development of city was plunged in disputes as different stakeholders were claiming their authority over the island.
"Port Qasim Authority (PQA), Defence Housing Authority (DHA) are claiming over the island whereas Pakistan Navy (PN) has security concerns about the development of a resort here," sources told.
The PQA claims that the land is near to their jurisdiction whereas the DHA is also claiming on the same grounds. However the PN has some reservations over the development of island due to security reasons.
The sources, however, said in fact that the island belonged to the Board of Revenue and the CDGK had signed the MoU with Saudi firm with the consent of the BoR.
Dispelling the impression of any security concern and rejecting the claims of the PQA and the DHA, sources said that all was just to keep away the CDGK from that project and to grab land of island, to be of high value after creation of that resort.
Another dispute over leasehold period is also causing delay in making any progress in this regard. "Saudi firm is demanding leasehold period of 99 years whereas the MoU envisaged leasehold period of 15 years," sources informed.
As per the MoU, the CDGK would let out Bundle Island on rental basis for a period of five years automatically extendable to another five years and would be again automatically extendable for next five years in favour of the Saudi Group.
However, it informed that meetings had been held at the top government level to resolve that issue, but a final decision was yet to be taken by the authorities concerned.
When asked whether City Nazim has any authority to extend the leasehold period, sources informed that City Nazim had the authority to give government land on lease or rent only for five years.
Sindh Government would take final decision, as it is its purview to extend leasehold period. It is expected that leasehold period can be extended to 35 to 40 years instead of 99 years, sought by Saudi firm.
However, Saudi Group is responsible for getting all clearance, no objections and approvals whenever required from the provincial and federal governments, whereas the CDGK would not be responsible for any clearance, no objection, approval or permission, instead it would only formally recommend their case and support it.
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