CDA unveils Rs42.9bn development push for Islamabad

According to an official letter issued by the CDA Finance Wing on September 7, 2026, the authority has released funds under its Annual Work Programme (AWP) 2026-27 and placed

ISLAMABAD: The Capital Development Authority (CDA) has approved a self-financed development programme worth Rs42.979 billion for the 2026-27 financial year, placing major road projects, long-delayed sector development and power infrastructure among its key priorities for Islamabad.

According to an official letter issued by the CDA Finance Wing on September 7, 2026, the authority has released funds under its Annual Work Programme (AWP) 2026-27 and placed them at the disposal of the Member Roads & Bridges for execution. The document, obtained by Minute Mirror, states that implementation will remain subject to PPRA rules, approval of NIT and technical sanctions, as well as mandatory pre-audit requirements.

The approved programme includes 12 new development schemes covering major road corridors and infrastructure projects in sectors I, C and E.

Among the most significant allocations is Rs3 billion for the construction of 11th Avenue from Iran Avenue to Srinagar Highway, a project expected to strengthen connectivity across the capital. The CDA has also allocated Rs1.443 billion for widening and rehabilitation of the Islamabad Expressway Service Road East between Faizabad and Gulberg, aimed at improving traffic movement along one of the city’s busiest routes.

Sector E-12 has received substantial attention under the programme, with Rs2 billion earmarked for roads, drainage, water supply and sanitary sewerage in E-12/4. Another Rs100 million has been allocated for the remaining roads, drainage, water supply and sewerage works in E-12/1, E-12/2 and E-12/3, while Rs200 million has been set aside for development of the E-12 Markaz.

The development package also includes several schemes for Sector C-14. The CDA has allocated Rs100 million for shopping centres and the Markaz, Rs200 million for the construction of two overhead water tanks and underground reservoirs, and Rs50 million for five RCC box culverts and nullah tunnelling works.

Infrastructure connectivity in Sector I-12 has also been included in the plan. The authority has earmarked Rs50 million for service roads in the sector and another Rs50 million for a link road connecting the northern area with I-12.

The power infrastructure component includes Rs166 million for installation of two 31.5/40 MVA power transformers at the I-11 Grid Station along with feeder lines to I-12. A further Rs368 million has been allocated for external electrification from the I-11 Grid to PHA flats in I-12.

The Finance Wing has directed the concerned formations to ensure that no expenditure is incurred without approval of the competent authority and completion of the required NIT and technical sanction procedures. It has also stressed compliance with PPRA rules, standard operating procedures and other codal formalities.

The CDA document places responsibility for expenditure, pre-audit and subsequent audit on the concerned divisions, offices and formations and calls for safeguards against duplication of payments.

The latest development programme comes as several residential sectors of Islamabad continue to await completion of basic municipal infrastructure. The focus on E-12 and C-14 is particularly significant as development work in parts of these sectors has faced delays over the years.

Urban development experts have welcomed the scale of the allocation but stressed that timely execution, transparent procurement and effective coordination among CDA wings will determine whether the projects translate into visible improvements for residents.

The success of the programme will also depend on resolving issues related to land acquisition, tendering, contractor payments and inter-departmental coordination, areas that have previously contributed to delays in major development schemes.

The CDA’s approval of the Rs42.9 billion package marks a major infrastructure push for the capital, with road connectivity, utilities and power supply forming the central pillars of the plan. The authority is now expected to move towards tendering and execution of the approved schemes in accordance with applicable rules and procedures.

Minute Mirror has contacted the CDA spokesperson for details regarding the expected tendering schedule and project commencement dates. A response was awaited at the time of publication.