KWSB’s massive disconnection campaign starts Monday

Pakistan Railways, PTCL first two organisations to be disconnected.

KARACHI:

The Karachi Water and Sewerage Board will launch a disconnection campaign from Monday, March 29, against bulk consumers. The first target will be Pakistan Railways.

KWSB managing director Misbahuddin Farid at a press conference on Friday said the Pakistan Railways had issued a cheque of Rs10.1 million but it bounced.

The second organisation in the disconnection line is Pakistan Telecommunication Company Ltd.

“The KWSB has to recover more than Rs35 billion from the defaulters of which the residential and industrial consumers owe Rs12.75 billion and Rs1.12 billion respectively”, he said. The total bulk defaulters owe Rs13 billion of which the federal government institutions owe Rs7.31 billion. Sindh provincial departments owe the utility Rs2.22 billion.

Farid said the KWSB is facing an acute financial crunch due to the heavy outstanding dues. The recovery is urgently needed to save KWSB from collapsing, he said. “The dues have crossed Rs35 billion, while our expenses are twice this amount.”

KWSB’s annual electricity expenses have increased from Rs284 million in 1992 to Rs 3.9 billion in 2011, the MD informed. “KESC’s tariff has been increased by 1,714% during the last 19 years, while the rates of different taxes have increased by 46.7%.” Quoting these statistics, the water utility claimed that the only way to deal with such inflating expenses is income - which they are not receiving because bulk consumers do not pay their bills.

Farid suggested the government subsidise the electricity tariff for KWSB otherwise it would be compelled to review its water tariff according to its operational expenditures.

The MD argued that KWSB has been laying water and sanitation infrastructures for the city’s residential and industrial projects but the Sindh Building Control Authority is solely receives commercialisation and betterment charges. The KWSB has approached the SBCA and asked for the utility’s due share of the recovery.

As far as residential defaulters are concerned, Keamari, Orangi, Baldia and Gadap towns are on top as the recovery rate is almost zero, Farid claimed.

The city has expanded both vertically and horizontally in terms of population and many residential projects. But most of the schemes do not have any water connection. “The developers did not take the KWSB into confidence and in future, it would not be possible for the utility to extend bulk connections due to our limited operational capacity and the outstanding dues.”

He said the residential consumers can avail 35 per cent rebate after they pay all of their outstanding water dues while they can get 25 per cent rebate if dues are paid in three equal instalments. Residential consumers would be the last to face the stern disconnection campaign.

Published in The Express Tribune, March 26^th, 2011.