ISLAMABAD: The Centre has so far shown its unwillingness to finance the proposed Phase-2 of Greater Karachi Water Supply Scheme (K-IV) after changes in its scope made by the Sindh government with additional estimated cost of over Rs30 billion, The News has learnt.
Sindh also requested the federal government for establishment of 50 megawatt (MW) for running water supply scheme project of K-IV but the cost of this project was not yet ascertained. Although, the revised PC-1 for K-IV has not yet been provided to the Planning Commission yet the revised cost of this project along with 50 MW might escalate manifold.
Karachi’s development projects are quite crucial for the PTI led regime in order to ensure continuous political support of MQM for survival of the incumbent regime. So it is yet to see how the funding requirement of K-IV after changes in its scope will be fulfilled at a time when the Centre finds it hard to spare fiscal space in the aftermath of the 18th Constitutional Amendment.
Sindh has proposed additional scope of work, which is still unapproved but it included augmentation projects to supply water from K-IV to Karachi Bulk Water Supply at estimated cost of Rs18.7 billion, second missing component of K-IV project costing Rs11.8 billion and third establishment of 50MW power plant. Top official sources confirmed to The News on Thursday that in line with development mechanism, if the scope of the project increased by 15 percent a revised PC-1 was required to be submitted. The proposal of the Sindh government would substantially change the scope with estimated cost of over Rs 30 billion.
The Ministry of Planning in its official response replied that Sindh was required to submit its revised PC-1 for consideration of all competent forums and ultimately the Executive Committee of National Economic Council (ECNEC). On receipt of PC-1 from the Sindh government, the federal government would then decide through the ECNEC whether the federal government should share the cost of additional scope of work, which is essentially the responsibility of the provincial government under the 18th Constitutional Amendment. “At this stage, any commitment or otherwise to share the additional cost is premature” said the official while showing official communication and further stated owing to tight fiscal space in the current fiscal, it seems difficult to make available additional resources.
The Greater Karachi Water Supply Scheme (Phase-1) was approved by the ECNEC at revised cost of Rs25.552 billion for supplying 260 MGD of water to Karachi metropolitan. Under the financing mechanism approved by the ECNEC, the cost of the project was shared by the federal and provincial governments on the basis of 50:50 percent cost sharing. The project is being executed by Sindh’s provincial government.
The federal government has so far provided Rs9.6 billion to Sindh government up to June 2019 and Rs800 million allocated for this project during the current fiscal year 2019-20. The Centre has estimated that its contribution would be standing at Rs10.2 billion against the required share of Rs 12.776 billion till June 2020. Against the approved scope, Sindh has so far achieved 35 percent of the physical work as reported in the fresh midyear review done by the Planning Commission last week.
The approved scope of work for the K-IV included canal section (260 MGD), conduct section (130 MGD), pumping mains (130 MGD), pumping stations (130 MGD), Intake and Gross Drainage Structure, raw water lagoons and filter plants (130 MGD) and clearance and surfacing of Right of Way (RoW), construction of service roads with boundary pillars and compound walls around filter units.
