Singapore’s Asia Challenge Investments (ACI) and its parent company APG Holding have announced that they have signed an agreement to build a land and housing development project to be known as Islamabad New City. The agreement was signed with the local group MG Pakistan.

The project is to be implemented in phases, with work commencing in 1996 and completion scheduled for 2009. The total cost is estimated at $1,600 million. The development will include housing, a mass transit system, road and rail links, and water, electricity and gas supplies.

Meinhardt Singapore is the consultant and Asia-link Construction is prime contractor. ACI says it is the first such infrastructure project to be entirely funded by private and foreign investors