"After the 2005 earthquake it had become essential to relocate inhabitants of the old Balakot City as after a seismic survey conducted by the geologists, it was found that two main fault lines pass through the area of Balakot", sources said. After providing Rs 1.5 billion to the KP government to purchase land from the local land owners of Bakriyal city, the provincial government failed to resolve the issue of land acquisition. "The land owners of Bakriyal city started protesting accusing the government of taking away their lands forcefully", sources said.
"When Bakriyal land is made available ERRA will take only 18 months to complete construction of New Balakot City. The construction work in sectors B and C is likely to be completed within two months while the KP government has yet to resolve the issue of land acquisition in the sectors A, D and E", sources added. Project of new Balakot City is planned with Rs 12 billion and so far Rs 3.5 billion has been spent in the available area for development. The project on its completion will benefit over 5000 families of Old Balakot.
Sources said that ERRA had decided to complete the construction work to relocate the inhabitants of the old Balakot city to Bakriyal within a period of three years (2007-2010). "Due to delay in land acquisition by the provincial government, the foreign donors that were offering assistance for the project, have diverted their money to other projects of ERRA", sourcse said.
Sources said that in 2008, when present government took over, ERRA had completed barely 1,627 projects in its existence of three years against its total portfolio of 14,528 projects. ERRA has completed 62 percent of its reconstruction portfolio ie 8,979 projects out of 14,528.
Currently 26 percent of the projects ie 3,755 costing Rs 70 billion are at various stages of reconstruction. However 12 percent of the projects ie 1,794 are ready for launching and require Rs 30 billion. ERRA has so far provided the housing subsidy to 48,704 families of entire Tehsil Balakot including the residents of Old Balakot Town and Rs 8.1 billion has been disbursed.