Karachi Water & Sewerage Board (KW&SB) will be able to cover its current operating & maintaining (O&M) cost in three years if reforms supported by Phase-I of Karachi Water & Sewerage Services Improvement Project (KWSSIP) were implemented, the World Bank forecasts in a financial analysis of the project.
The WB carried out the financial analysis for the project, which would be funded by itself along with the Asian Infrastructure Investment Bank (AIIB) and Sindh government. The WB and the AIIB would lend 80 percent finances for the project and remaining twenty percent would be put in by provincial government.
The project has four phases. The financial analysis for sustainability of the project depends upon the implementation of Phase-I of the project
Phase-I of the project is comprised of three components, which involves $ 100 million and would be implemented in four and half years.
Component-I relates to reforms in KW&SB and would be implemented at the cost of Rs 1 billion. Component-II is about securing sustainable water supply & sewerage at the cost of Rs 10.776 billion and component-III pertains to project management & studies with the total cost of Rs 2.251 billion.
The Phase-I includes institutional reforms including revenue enhancement, phase wise rehabilitation works for sewerage & water supply including Non-Revenue Water (NRW) reduction, investments in Katchi Abadis and the relevant contract & project management works. Phase-I also includes the preparation of design and safeguards documents for the investments of Phase-II.
As per PC-1 of the project, Karachi's water demand is estimated at approximately 1000 Million Gallons per Day (MOD) having a present gap between the demand and supply of water of around 500 MOD, Whereas, it is observed that on the sewerage front, around six million Karachiites have no access to public sewerage services due to complex challenges of inadequate sewer trunk mains, malfunctioning sewage pumping facilities and waste to treatment capacity almost nil contributing of discharging 475 Million Gallons raw sewerage directly in sea on daily basis.
The Karachi Water & Sewerage Services Project (KWSSIP) has been developed after detailed discussions among all the stake holders of Karachi with the WB consultants experts and aims to bring the targeted institutional and governance reforms in KW&SB along with a massive strategic investment for the improvement and installation of Water & Sewerage infrastructure in Karachi.
The Karachi Water & Sewerage Services Improvement Project includes reforms, investment, surveys and studies which help create an enabling environment for financial viability and private sector participation.
The project will reduce water losses and pilot models to help vulnerable people, particularly in low-income communities, getting access to clean water.
The KWSSIP investment plan for the entire Program spreads over 12 years in four phases having both components of reforms and investments for strategic infrastructure works aiming to provide relief to entire population of the Karachi City.
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