The Federal Government Employees Housing Authority (FGEHA) has approved a proposal to outsource four amenity plots in Islamabad’s G-13 and G-14 sectors for the development of health and education facilities.
The plots have been reserved for a hospital, two dispensaries and a school. Under the proposed arrangement, private firms will be invited to develop and operate the facilities through a public-private partnership and joint venture model.
The initiative is aimed at addressing the need for essential services in populated and developing areas while reducing the reliance on government funding for construction and operation.
Four plots identified for development
FGEHA has identified four specific sites for the proposed projects.
These include a 4,813-square-yard plot for a hospital in G-14 Markaz, along with another 4,813-square-yard plot for a dispensary in G-14/3.
A smaller 67-square-yard plot in G-14/4 has also been earmarked for another dispensary.
The fourth site is a 333-square-yard plot in G-14/3, which has been reserved for the construction of a school.
The facilities are intended to provide essential healthcare and education services to residents of the surrounding sectors.
Private firms to develop and operate facilities
Under the proposed model, FGEHA will provide the land while the selected private-sector partner will be responsible for financing, construction, operation and maintenance of the facilities.
The projects will be developed under a Design, Build, Finance, Operate and Transfer (DBFOT) model.
The initial concession period has been set at 20 years, with the possibility of extending it by another 10 years.
This arrangement would allow private companies to invest in the development and operation of the facilities while FGEHA retains ownership of the underlying land.
Open competitive bidding planned
The FGEHA board has authorised the authority to invite Expressions of Interest (EOIs) and Requests for Proposals (RFPs) through an open competitive bidding process.
Private companies interested in participating will therefore be able to submit proposals according to the terms and conditions set by the authority.
The competitive process is expected to help FGEHA identify private partners with the required financial resources and technical expertise to develop and operate the proposed facilities.
The Executive Board has approved the proposal in principle and authorised FGEHA to proceed with the outsourcing process.
FGEHA to retain ownership of land
Although private firms will be responsible for developing and operating the facilities, ownership of the land will remain with FGEHA.
Under the DBFOT arrangement, the private partner will finance and develop the infrastructure and operate it during the concession period.
Once the concession period expires, the developed infrastructure will be transferred back to FGEHA.
The structure is designed to allow the authority to use its available land for public facilities while bringing in private investment and operational expertise.
Funding constraints affected school development
FGEHA officials also informed the board about the previous allocation of amenity plots for educational facilities.
According to officials, 13 school plots had previously been handed over to the Federal Directorate of Education for the development of schools and colleges.
However, only two of these plots have so far been utilised, with limited government funding cited as a major factor behind the slow development.
The latest outsourcing proposal provides an alternative approach for developing some of the remaining amenity land through private-sector participation.
Focus on health and education facilities
The four plots covered by the latest proposal are intended for services that are directly relevant to residents of G-13 and G-14.
The proposed hospital and dispensaries could expand healthcare access in the sectors, while the school would add educational infrastructure to the developing residential areas.
FGEHA expects the public-private partnership model to attract investment while allowing essential facilities to be developed without requiring the authority to finance the entire construction and operational cost.
Private investment expected to support development
Officials said the outsourcing model could attract both private investment and specialised operational expertise.
The approach would allow private partners to take responsibility for the financial and operational aspects of the projects while FGEHA continues to own the land.
The authority will now proceed with the next stages of the outsourcing process following the board’s approval.
The projects will ultimately depend on the competitive bidding process, selection of private partners and completion of the required agreements.
If implemented, the initiative could add new healthcare and education facilities to Islamabad’s G-13 and G-14 sectors while creating a model for using public land through private-sector participation.
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