The Federal Government Employees Housing Authority (FGEHA) is ending its collaboration with a private construction firm to restart the stalled Lifestyle Residency Apartments project in Islamabad’s Sector G-13.
The decision was made during a recent executive board meeting chaired by Federal Minister for Housing and Works, Riaz Hussain Pirzada. Officials revealed that construction had been stalled since 2021, causing project costs to rise from Rs. 14 billion to Rs. 17 billion.
The project, initiated to build 2,900 residential apartments for federal employees, was launched in partnership with a private firm in 2009. Following legal disputes, an out-of-court agreement in 2014 allowed work to resume in 2016.
However, by 2021, only 70% of the project had been completed. The contractor ceased work, but the private firm continued receiving payments, including Rs. 220 million over three years and a 4% management fee.
Frustrated allottees, having already paid Rs. 12.5 billion, have pressured the FGEHA to take control and ensure timely completion. The board approved the termination of the joint venture, instructing that all legal processes be followed as per the agreement’s clauses.
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