Hangu Model Town
The Housing Sector is among the crucial sectors identified by the provincial government as a driver of economic growth. The housing sector is a large potential contributor to development as well as GDP growth. A burst in activity in this sector sets off a chain reaction in other allied industries. The construction & housing sector links to at least sixty industries. There has been rapid urbanization in the province over the last three decades which has greatly increased demand for housing units in the major cities.
The Government of Khyber Pakhtunkhwa is striving hard to provide quality and affordable housing to the people. Currently, housing units in the urban areas are being constructed without appropriate planning wherein basic amenities like water supply, sanitation, proper roads and other utilities are missing.
The Provincial Housing Authority has proposed a site for the housing with an area of 1,420 acres on state owned land. The proposed site is located about 1.24 kilometers from Hangu bypass between Hangu-Lachi and Safarey road.
The cost of the proposed project is Rs. 9 billion. The Provincial Housing Authority has recommended this project feasible in terms of accessibility, availability of water and seismic zoning plan. While working out FIRR it is assumed that this will take care of security risk, sensitivity risks like price variation, delayed benefits, reduced benefits and investor's miscellaneous risks. The usual FIRR for public projects is slightly above bank markup that is around 10%.
In investment context, the proposed project will offer quick profitable returns for the investors. The commercial areas, amenities plots and auction able housing plots will be a major source of generation of funds. Skilled and semi-skilled labour and construction material is already available in the area. The said Housing scheme will not only elevate the living standards of general public but will also create job opportunities for the skilled and unskilled labour. The project will increase the housing stock in the province for all walks of life. It will cap the haphazard growth of housing schemes from other developers.
The project provides an opportunity for the donor agencies / investors for investment and to recoup the capital investment with profit. It can be executed through preferably Public Private Partnership (BOOT/BOT) or any other mode mutually agreed by both the parties. The project is open for all the state-owned, state-supported and private entities.
The government of Khyber Pakhtunkhwa will facilitate investors for interaction with relevant agencies and is committed to partner with the investor by providing all basic infrastructure in execution of project. It will provide all legal and technical assistance to the investors. The government will provide assurance of money security.