Two amendments have made in the PHA Act 2005 in 2014 and 2017 about land sharing formula viz-a-viz compensation of land compensation for the land acquired for housing schemes under PHA and assignment of role and responsibility to the Advisors/Special Assistants to the Chief Minister for housing in the affairs of PHA. Besides the PHA Regulations have also been changed in 2014.
Two mega housing projects namely; Peshawar Model Town and CPEC City have been launched under Public-Private-Partnership. Agreement has already been entered with Frontier Works Organization, presently in the process of land acquisition to be followed by infrastructure development and sale. These two mega housing projects are being built as smart cities on modern lines of town management with all facilities like housing, apartments, commercial malls, theme parks, sports facilities, educational, health and recreational facilities and many more. Key features of each scheme are;
The Provincial Housing Authority under the auspices of Housing Department has initiated two very promising and ambitious long term projects namely; Establishment of Satellite Towns in all the Districts and Introduction of Khpal Kor Low cost housing through Bank Home Financing.
There is a Housing deficiency of about 2 million housing units in Khyber Pakhtunkhwa and estimated minimum investment required at the flat rate of Rs. 1.8 million per unit is Rs. 3600 billion, which cannot be met by the government in its limited resources. Mobilization of private sector can plug the gap and control the souring real estate prices.
There are about 1 million government servants/pensioners in the province, which includes employees of the provincial government, autonomous bodies, federal government employees and employees of armed forces working in the province/hailing from KP and pensioners. The facility of Bank Home Finance is intended for about 120,000 active employees (12% of the total strength) in the first phase. An amount of Rs. 216 billion is required @ Rs. 1.8 million per/unit. The finance will be initially provided for single storey 5 Marla houses, which will comprise 2 beds, DD, kitchen, 2 baths, car porch, back yard and boundary wall. The unit will cost about Rs. 1.8 million, including cost of Plot, cost of infrastructure development and cost of construction. Similarly, the provincial government want to provide the facility to 200,000 general public in the first phase, which requires about Rs. 360 billion for the purpose. Both these intervention will collectively plug the demand-supply gap/deficiency by 15% only.
The financed amount will be recovered from the salaries of the government servants over a period of 20 years. The banks will charge KIBOR+1/2% spread. The plot will be accepted as collateral and 20% equity. The home finance will be governed under a tripartite agreement between the bank-employee and accented by the Provincial Housing Authority. The plots will be allotted through computerized draw. The construction is required to be completed in one year. The allottees will construct their houses themselves.
In the first phase plots already developed in the housing schemes namely; Mulazai Peshawar, Jalozai Nowshera, Jerma Kohat and Havellian Abbottabad will be constructed under this facility. Another site is being developed at the state land located at Dheri Zardad near Charsadda Interchange on main motorway. Besides the scheme will be rolled out to the sites identified for the satellite towns where both conventional and low cost housing will be established.
In order to avail the bank home finance, a series of meetings were held with the Regional Chiefs of the commercial banks but the banks were discouraging even the risk free lending to government servants. Therefore the issue was taken up in the meeting held on 07.08.2017 between the Governor SBP and Chief Minister Khyber Pakhtunkhwa. In that sequel a meeting was held in SBP Karachi on 14.9.2017. As a result thereof the banks are negotiating terms and conditions for the BHF in KP. The Bank of Khyber has formulated a model for BHF. In this connection first MOU is being signed with the BOK followed by Habib Metro Bank. The BHF is primarily designed for government servants in the first phase. However general public can avail the BHF at standard terms & conditions. For this purpose four Regional facilitation centers are being established at Peshawar, Swat, Abbottabad and Kohat to provide free support facilities in documentation for the BHF.
The present cities have grown as human colonies mostly unplanned and semi slums, confronting with plethora of problems like roads, sanitation, potable water, health and hygiene hazards and many more. The Satellite Towns in all districts of Khyber Pakhtunkhwa will provide planned alternate urban facilities of housing in every district, equipped with all facilities and catering for the present and future housing needs by 2040-50 and on the hand mitigate unplanned housing on fertile agricultural lands. The satellite towns will cater for conventional housing as well as low cost housing. Lands are being identified in consultation with district administration and District Nazims. Meeting have been conducted with all Deputy Commissioners and Nazims. Some lands have been identified and under pre-feasibility and remaining being actively pursued.
Housing is a capital intensive subject and its potential can be better exploited through regulated and transparent PPP ventures. Four commercial properties in Peshawar have been offered for construction of Malls and apartments through PPP. These properties are City Center area/Tokra 3, Nishterabad main GT Road and two plots on Warsak Road at very prime locations. Besides Hangu Township Hangu and Swat Model Town Swat has been offered to private sector for infrastructure development.
Stakeholders Summit Conferences Networking, marketing and communication is key in the modern business affairs. Two real estate stakeholders’ conferences are being organized at Peshawar and Islamabad in the months of January 2018.