City District Government Karachi (CDGK) has finally revoked the agreement with the private firms assigned to construct around 28 pedestrian bridges at different spots in the metropolis on Built Operate Transfer (BOT) basis for failing to complete the schemes within stipulated period.
CDGK official told the Business Recorder on Tuesday that the CDGK would undertake the rest 22 pedestrian bridges in the city as only six such bridges were being constructed by the private firms at various points.
The agreement was revoked by the CDGK in the wake of non-initiation of construction work on the schemes from the private firms, he said and added that the under-construction bridges would be completed by the assigned firms however, the rest of the project would be reclaimed by the CDGK.
Since the agreement singed in 2004 between the CDGK and private firms had gone through uncertain situation for a number of times before the CDGK had finally taken the decision to abolish the agreement. It was singed by the former City Nazim Naimatullah Khan with the representatives of the four private firms - Universal Graphics, United Construction, Armida International and Gujrat Steel - to construct 28 pedestrian bridges on BOT basis.
In line with the accord, every firm had to construct over all seven pedestrian bridges in the city and one each on Shahra-e-Faisal including FTC, LalKoti, Duty Free Shop near Awami Markaz, and Shah Faisal Colony Gate.
Moreover, the private firms were allowed to use pedestrian bridges for 10 years for advertisement purposes after building them on BOT basis while, in return, the CDGK would rebate them taxes.
The first problem developed when the private firms stopped the construction of bridges over the dispute of the height of billboards as they wanted to keep the height of boards 20 inches while the CDGK insisted on fixing it to 10 inches, which took months to be settled down. However, later the height of the hoarding boards was fixed 10 inches through mutual understanding between the private firms and CDGK.
The second dispute emerged due to hike in the prices of steel and iron, which jeopardised the construction of bridges. The private firms were of the view that serious inflation made them rethink about the completion of the schemes.
They suggested that the bridges to be constructed with cement instead of steel or iron, which further dragged the construction of bridges to a halt for quite a while.