CDGK financial issue

Financial crisis takes toll on CDGK projects
* 42 projects worth billions of rupees lying pending
* City nazim had floated unique ideas like solar energy

By Jamil Khan | KARACHI

THE ongoing financial crisis and uncertain law and order conditions have taken the entire country in their grip and the CDGK is no exception. It has been forced to abandon public-private partnership projects announced in the last three years, particularly those announced after the formation of the new government about six months ago, Daily Times learnt.
The city government has, in its three-year tenure, announced a total of 42 projects worth billions of rupees with the help of foreign direct investment but work was not started on even a single project. The city government has been extending the deadlines for proposals submitted for the last couple of months as not even a single multi-national foreign firm is showing interest.
The projects include the installation of a dairy milk processing plant, the establishment of animal feed mills and cattle and dairy farming projects at Landhi Cattle Colony, a multi-level car parking with a food court on its roof top at University Road, Cineplex and auditorium, inter-city bus terminal Super Highway, water sports at Safari Park, multi-story car parking plaza at Shahabuddin Market, Saddar, shopping mall, hypermarkets, CNG fuel stations, offices and hotels in different parts of the city.
It is also mentioned that the city government led by the City Nazim Syed Mustafa Kamal floated various unique ideas like solar energy as an alternate source of electricity to bring local and foreign private firms but unfortunately not a single project was finalized.
The city government announced these projects not only to facilitate citizens but also to create income resources for the city government as it has been facing a financial crunch for quite some time now.
Sources in the Enterprises and Investment Promotion Department of city government said that the current volatile condition of the political scenario and law and order are discouraging foreign firms from investing in the city.
Over the last three years the department has spent a huge amount on advertisements and invitation bids on public-private partnership projects. The projects attracted many firms but they never materialized because of the tedious documentation process and the long project evaluations.
Enterprises and Investment Promotion EDO Dr Shahab Imam told Daily Times that due to the poor response of private parties, they have been extending the dates of many projects for the last six months.
He said that it was not their fault that the ongoing crisis was causing a delay in the public-private partnership projects of city government.
“After the improvement of the overall economic condition the foreign firms will come back to invest in the city government projects,” he said.
Shahab said that many firms had shown interest in different projects and confirmed that no project was actually started.
-Published in Daily Times | Oct 21, 2008

~ by jamilkhan on October 23, 2008.

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