Sindh, IFC sign accord for 65mgd water supply project for Karachi

The Sindh government and the International Finance Corporation (IFC), a member of the World Bank Group, signed a landmark agreement on Tuesday at the CM House to help the provincial government to structure a public-private partnership project that would provide clean drinking water to nearly one million people of Karachi.

The signing ceremony was held here under the chairmanship of Chief Minister Syed Murad Ali Shah. The ceremony was attended by Senior Vice President Operations IFC Stephanie von Friedeburg, Regional VP Hela Cheikhrouhou, Country head Nadeem A. Siddiqui, Regional Head. Shabana Khawar, Muneer Ferozie, Zeeshan Ahmed Sheikh, Mirza Khurram Baig, Muhammad Bhatti. The government was represented by Minister for Local Government Nasir Shah, KMC Administrator Murtaza Wahab, CM’s Special Assistant Qasim Naveed, Principal Secretary to CM Sajid jamal Abro, Secretary Local Government Najam Shah, Secretary Finance Hassan Naqvi, Chief Economist P&D Hassan Naqvi and DG PPP Unit Khalid Shaikh.

The CM said that with a population of over 16 million, Karachi, the capital of Sindh, was Pakistan's largest city, economic hub and main seaport, but it had struggled to maintain a reliable freshwater supply.

He added that under the agreement, the IFC, a member of the World Bank Group, would advise the Karachi Water and Sewerage Board (KWSB) on structuring and tendering a project to build new infrastructure to boost the city’s water supply.

The project, to be executed by a private company, would include water treatment facilities and what was known as a bulk water conveyance system, Shah said and added that the system would supply Karachi with 65 million gallons of water per day from Keenjhar Lake, some 140 kilometres from the city.

“By bringing in the private sector to develop and operate a bulk water supply system, more people will have access to the water they need,” Shah. “The project will provide the framework for future greenfield water infrastructure projects.”

The signing of the agreement follows another landmark public-private partnership for an advisory agreement between the IFC and the KWSB last year, which included the rehabilitation and maintenance of a 100mgd canal, a water treatment plant and a pumping station.

The project is Pakistan’s first greenfield water supply initiative carried out under a public-private partnership. Senior Vice President IFC Stephanie von Friedeburg said the water scarcity in Karachi had affected residents and hampered businesses for years; therefore, improved infrastructure was critical to fix it.

She added that the project demonstrated the power of the private sector to help governments modernise infrastructure, jumpstart economic growth and improve the lives of everyday people.

The project is part of the World Bank Group’s strategy in Pakistan to support private sector development and accelerate improvements in public service delivery. It also complements the World Bank-sponsored $1.6 billion Karachi Water and Sewerage Services Investment Project, which aims to improve the KWSB’s efficiency and sustainability.

On behalf of the Sindh government Managing Director KWSB Asadullah Khan signed a public private partnership advisory agreement for 65mgd Karachi Bulk Water Supply Project with IFC Regional Vice President Hela Cheikhrouhou, which was witnessed by Chief Minister Shah and others.