WB approves $240m loan for water, sanitation project in Karachi

ISLAMABAD: The World Bank (WB) has approved a $240 million loan for the Second Karachi Water and Sewerage Services Improvement Project (KWSSIP-2) to provide safely managed water, sanitation, and hygiene (WASH) services in the city of Karachi.

“Safely managed WASH services are the foundation of public health and quality of life and are central to addressing the stunting crisis in Pakistan,” said Najy Benhassine, WB Country Director for Pakistan. “KWSSIP-2 will expand the scope of investments in bulk water augmentation, water treatment, wastewater treatment and reuse, water distribution, and sewer network rehabilitation. About half of all beneficiaries will be women, 58 per cent will be youth (age 15–24), as well as over half a million people in Katchi Abadis (informal settlements).”

The project builds on KWSSIP-1 and will finance and expand on several investments to strengthen Karachi’s water supply, sewerage, sanitation, and treatment infrastructure throughout the city. In addition, it will improve water and wastewater infrastructure and help expand safe drinking water and sanitation services in several Katchi Abadis, benefiting over half a million people. The long-term benefits of the project include reduced cost of using alternative water sources, reduced time spent collecting water, and health benefits from reducing waterborne diseases.

The project will provide safely managed water supply to nearly 16 million people and sanitation services to nearly 7.5 million people in Karachi by 2030. It will also improve the performance and financial sustainability of KWSC and promote private sector partnership in delivery of WASH services.

The project is the first phase of the [World Bank’s support for the] Pakistan Urban WASH Services Programme that aims to reach 33.5 million people with safely managed WASH services by 2035. KWSSIP-2 will be co-financed by the Asian Infrastructure Investment Bank with $240 million.