Islamabad, Dec 17: The Federal Government Employees Housing Authority (FGEHA) has decided to end its collaboration with a private construction firm to revive the stalled Lifestyle Residency Apartments project in Sector G-13, Islamabad. The decision was made during an executive board meeting chaired by Federal Minister for Housing and Works, Riaz Hussain Pirzada.
The Lifestyle Residency Apartments project, which aims to build 2,900 residential units for federal employees, was initiated in 2009 in partnership with a private firm. However, due to legal disputes, construction was stalled multiple times, and despite resuming in 2016 following an out-of-court settlement, work came to a halt again in 2021. By that time, only 70% of the construction had been completed.
The halt in construction, combined with rising costs, has led to an increase in the project’s total cost from Rs. 14 billion to Rs. 17 billion. The private firm continued receiving payments, including Rs. 220 million over the past three years and a 4% management fee, despite not meeting deadlines.
The delay in completion has caused frustration among the allottees, who had already paid Rs. 12.5 billion. They have been pushing the FGEHA to take control and expedite the process. In response, the FGEHA has approved the termination of the joint venture, directing that all legal processes outlined in the original agreement be followed to ensure the project’s completion.
This move marks a significant step in addressing the concerns of federal employees awaiting their homes, and the FGEHA is expected to manage the project directly moving forward to ensure it is completed on time.
