Banks, LDA ink deal to build 35,000 apartments

Punjab Chief Minister Sardar Usman Buzdar said the prime minister's vision of providing roof to the shelterless has been materialised by the Punjab government as banks and the public sector have joined hands to provide residential facilities to the common man.

He was addressing a ceremony for the signing of a Rs10 billion agreement between Lahore Development Authority and the Bank of Punjab at his office.

DG LDA Ahmed Aziz Tarar and BoP chairman Zafar Masood signed the agreement for construction of 4,000 apartments for LDA City Naya Pakistan Apartments over an area of 800 kanals. The BoP will provide resources for the project.

The chief minister said that the historic agreement would pave the way for a new culture to help the needy through mortgage financing. It is satisfying that the LDA plans to construct 35,024 apartments over an area of 8,500 kanals in three years at Mouza Halloke adjoining Ring Road, he said.

The chief minister said that PC-I worth Rs20 billion had been approved for the provision of necessary infrastructure, including construction of roads, sewerage, the supply of water and electricity etc.

Similarly, another PC-I of Rs10 billion had also been approved to construct 4,000 apartments in the first phase. The apartment's booking would be made through a 10% down payment and the rest of the payment will be made in instalments, he added.

An apartment would approximately cost Rs2.7 million, Buzdar continued. Initially, the apartment cost was estimated at around Rs4.5 million but it was decreased to facilitate the low-income households, he said. Giving further details about the scheme, the chief minister added that a consortium of Punjab Bank, Habib Bank, Faisal Bank, Bank Alfalah, UBL, Meezan Bank and National Bank had been formed to provide a mortgage financing facility.

The Naya Pakistan Housing Authority would provide Rs300,000 subsidy while banks will provide soft loans under Islamic banking (takaful). The loans will be payable in a period of 5, 10 and 20 years and a directorate had also been established to ensure a fast-track implementation, he added.

The CM was briefed that a residential block would comprise 32 units while more than 60% of space had been reserved for roads, green belts, parks and footpaths.

The four-storey blocks - 125 in number - will be constructed with an area of 650 square fee for each apartment. Each apartment will comprise two bedrooms, two bathrooms and a balcony. The payment of instalments will start after possession.

According to the agreement, the LDA will construct and allot apartments through balloting and will also be responsible for the maintenance of building infrastructure. The BoP will receive applications, issue letters of comfort to expected allottees along with the provision of soft loans to successful applicants under Islamic mortgage financing.

Housing Minister Mian Mahmood ur Rasheed, MPAs Sadia Sohail Rana, Umer Aftab, vice chairman LDA SM Imran, vice chairman WASA Sheikh Imtiaz, secretaries of housing and information departments, Chief Engineer LDA, DGPR and others also attended the ceremony.