For turning the civic body of the Capital into a corporate entity to generate funds for mega development schemes, the Capital Development Authority (CDA) has decided to hire foreign firms to set up a "Land Bank" in Islamabad, sources said on Friday. The main purpose of setting "Land Bank" is to utilise land in the non-developed sectors to generate funds for development work, the sources said.
About two-thirds of plots available in the federal capital have yet to be developed due to meagre financial resources and only 15 sectors have so far been opened (out of total 45 sectors) in over 43 years.
The "Land Bank" will produce funds for the CDA through developing plots in different upcoming sectors and commercial centres, the sources said, adding that the CDA is likely to undertake mega development projects in Islamabad on 50-50 basis to lessen the burden on the civic authority.
CDA Chairman Kamran Lashari has also discussed in detail the option of "Land Bank" establishment during the last Board meeting. The members have also supported the idea of Lashari.
It was also learnt that Interior Minister Aftab Sherpao has expressed willingness to float tenders in order to make CDA a corporate entity.
CDA in its budget 2005-06 has proposed to sell about 804 plots of different sizes in the auction to earn Rs 800 million revenue. CDA had already been given financial autonomy.
The Interior Ministry is working on a plan to make CDA a corporate body after its restructuring.
In line with its restructuring, the CDA would be registered with the Islamabad Stock Exchange (ISE), after which its shares would be floated in the market, the sources added.
A proposal has also been under discussion to induct private or public representatives in the CDA Board to minimise the role of CDA officials and make it more efficient organisation, the sources added.
They said that proposals regarding corporatisation of CDA would be approved in the next three months after which the shares would be sold in the market.
Prime Minister Shaukat Aziz had also directed restructuring of the CDA with the purpose of increasing its efficiency and making it a more dynamic body.