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Two key projects of Karachi in water and sewerage areas have been awaiting the release of funds or received short funds from the federal government as a part of its share for the completion of these projects.

Greater Karachi Water Supply Scheme - commonly known as K-IV project - and Establishment of Combined Effluent Treatment Plan (CTEP) for industrial areas of Karachi have been planned to be completed by Sindh and Federal Governments jointly by sharing the financing of the project.

Federal and provincial governments have to equally share K-IV project whereas former has to share 33 percent of the cost of CTEP.

The federal government allocated Rs 800 million in Public Sector Development Programme (PSDP) of financial year 2019-20, however it didn't release any fund in the first eight months (July-Feb) of current fiscal. The total cost of the project is Rs 25.510 billion, of which federal government has to contribute Rs 12.775 billion.

The project is designed to provide 650 million gallons of water daily to Karachi in three phases.

On the other hand, Federal Government allocated Rs 500 million for CTEP in PSDP 2019-20 and in the first eight months of current fiscal, center released Rs 250 million for it.

The federal government's share in the financing of the project stands at Rs 3.893 billion. The half of the allocated amount was released in first eight months of current financial year.

The half of the allocated amount released for the project was done in first week of December and since then no amount was released so far.

The project's total cost stands at Rs 11.7 billion and has been planned to be completed by June 2021. The share of the federal government is Rs 3.893 billion and the rest would be contributed by the provincial government of Sindh.

Copyright Business Recorder, 2020

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