Crescent Steel and Allied Products Limited (CSAP) has reached an agreement with the joint venture of China Harbour Engineering Company Limited (CHEC) and Al-Fajr International (AFI) to supply an increased quantity of coated pipes for the K-IV project.

The listed company shared the development in a notice to the Pakistan Stock Exchange (PSX) on Wednesday.

“We have to inform you that Crescent Steel and Allied Products Limited has agreed with China Harbour Engineering Company Limited (CHEC) - Al-Fajr International (AFI) Joint Venture (JV) to manufacture and supply an additional quantity of coated pipes (Hot Rolled Coils will be provided by the client) in its existing contract.

“Through this revision, we shall supply an additional quantity of 65,000 meters of coated steel line pipes for the K-IV project, the Greater Karachi Bulk Water Supply Scheme,” read the notice.

Crescent Steel gets Rs3.27 billion LOI for pipes coating for K-IV project

The K-IV project, formally known as the Greater Karachi Bulk Water Supply Scheme, is a large-scale initiative aimed at addressing the chronic water shortage in Karachi, Pakistan.

The project, being jointly developed by the provincial and federal government, is designed to bring additional water to the city by sourcing it from the Keenjhar Lake, located in the Thatta district of Sindh, approximately 122 kilometers from Karachi.

K-IV project comes under Sindh govt’s renewed focus

Meanwhile, the company in its notice informed with the latest revision the total order value of the contract will increase from Rs5,886 million to Rs8,595 million.

“Manufacturing is expected to commence in the second quarter of the current financial year and shall be completed, hopefully, by the second quarter of the next financial year.

“The scheduling and some other conditions are, however, being finalized,” it added.

Incorporated on 1 August 1983 as a public limited company in Pakistan, Crescent Steel and Allied Products Limited operates five segments steel, cotton, investment and infrastructure development (iid), energy and hadeed (billet).