Prime Minister Nawaz Sharif has reportedly set aside Punjab's opposition to providing funds from federal Public Sector Development Programme (PSDP) to Greater Karachi Water Supply Scheme (K-IV), well informed sources in Planning Commission told Business Recorder.
On August 15, 2012, at a CDWP meeting, the representative of Punjab Government argued that the subject of water supply has been devolved to provinces under the 18th Constitutional Amendment; therefore there is no justification to implement the project through the federal PSDP.
The representative of Punjab government further stated that on the one hand the federal government has reduced funds to provinces, but on the other hand it is providing additional funds to Sindh. He said that a strong observation on the subject project may be recorded for consideration of higher authorities.
The sources said Greater Karachi Water Supply Scheme (K-IV) has been designed with a total capacity of 650 MGD (million gallons per day) to meet the water demand of the 18.5 million inhabitants of Karachi city. The present water demand in Karachi is approximately 1,000 MGD, whereas the total existing supply is 650 MGD, resulting in a shortfall of 350 MGD.
K-IV scheme has been divided into three stages:
Stage-I: 260 MGD;
Stage-II: 260 MGD; and;
Stage-III: 130 MGD.
The scope of work would include: (i) Land Acquisition (1,000 ft RoW to cover all three stages, as well as canals and conduits); (ii) head regulator; (iii) pumping stations; (iv) treatment plants; and (vii) reservoirs lagoons.
The sources said CDWP in its meeting held on 18th June 2012 approved in principle, the project, subject to a feasibility study, rationalisation of scope and cost and clearance by the Finance Division, as far as expenditure under the 18th Amendment was concerned. A modified PC-I of the project was considered by the CDWP in its next meeting held on 15th August, 2012 and recommended to the ECNEC subject on the following conditions: (i) the cost of land would be borne by the Government of Sindh and the remaining cost would be co-shared by the Federal Government, the Government of Sindh and the City District Government on a 33:33:33 cost sharing basis; and (ii) the scope & cost of the project would be rationalised by a committee headed by Member (I&M), Planning Commission and comprising members from the Government of Sindh and the Finance Division.
In compliance with the CDWP decision, a meeting of the rationalisation committee was held under the chairmanship of Member (I&M), Planning Commission on August 31, 2012 to rationalise the scope and cost of the project. As a result of the meeting, the cost of the project was rationalised from Rs 29.768 billion to Rs 25.55177 billion in consultation with representatives of the Government of Sindh, the Karachi Water & Sewerage Board and the Finance Division.
According to sources, due to the importance of the project, the Chairman, Executive Committee for National Economic Council (ECNEC) accorded anticipatory approval on October 31, 2012, for incurring an expenditure of Rs 2 billion up to 30th June, 2013. Subsequently, in February, 2013, M/o Planning, Development and Reform requested the Government of Sindh for the following: (i) to confirm the availability of required land measuring 10,140 acres for Right of Way (RoW), pumping stations and filtration plants; (ii) the cost of clearance, surfacing of RoW, construction of service roads with boundary pillars (both edges of RoW) compound walls around filtration plants and pumping stations amounting to Rs 1,500 million should be borne by the Government of Sindh; (iii) the remaining cost Rs 24.05177 billion to be co-shared by Federal and provincial government and CDG, Karachi on a 33:33:33 basis; and (iv) for provision of Rs 2.0 billion, the Government. of Sindh and the CDGK may confirm the availability of funds for the project.
The sources further stated that instead of confirming the availability of land, finalising the cost, and ensuring the availability of funds, the Sindh government submitted a modified PC-I in June, 2013 with a cost sharing formula of 50:50 between the Federal and Provincial Government. The modified PC-I was not in accordance with the CDWP decision, therefore, the PC-I was returned to the sponsors on September 12, 2013 with the direction that the PC-I may be revised and re-submitted to the M/o Planning, Development and Reform for consideration by the CDWP/ECNEC.
The sources maintained that the Prime Minister of Pakistan during his recent visit to Karachi on 10th July 2014 accorded approval to fund the K-IV project on a 50:50 cost sharing basis between the Federal Government and the Government of Sindh. Therefore, the Government of Sindh has re-submitted the modified PC-I at a rationalised cost of Rs 25.555177 billion and requested for an early approval.
The CDWP in its meeting held on July 17, 2014 considered the project and recommended for ECNEC approval at a rationalised cost of Rs 25.551.77 million with cost sharing on a 50:50 basis between the Federal Government and the Government of Sindh as per the directive of the Prime Minister. Subsequently, ECNEC also endorsed the decision of the CDWP on July 18, 2014.
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