Sindh, IFC sign deal on potable water supply

Public-private partnership project to benefit around one million residents in Karachi

KARACHI:

The Sindh government and International Finance Commission (IFC), a member of the World Bank Group, signed a landmark agreement on Tuesday at the CM House to help the provincial government 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 Sindh Chief Minister Syed Murad Ali Shah. The ceremony was other senior officials.

The chief minister said that with a population of over 16 million, Karachi, the capital of Sindh, was Pakistan's largest city, economic hub, and main seaport. "However, it has struggled to maintain a reliable fresh water supply." He added that under the agreement, 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 supply.

The project, to be executed by a private company, would include water treatment facilities and a bulk water conveyance system, Shah said. He continued that the system would supply Karachi with 65 million gallons of water per day from Keenjhar Lake, some 140km 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," the CM said. "The project will provide the framework for future greenfield water infrastructure projects. " It may be noted that Pakistan ranks third, globally, for acute water shortages, according to the International Monetary Fund.

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Tuesday's signing follows another landmark public-private partnership for an advisory agreement between IFC and KWSB last year. This included the rehabilitation and maintenance of a 100 MGD 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.

IFC Senior Vice President Stephanie von Friedeburg, speaking on the occasion, said that water scarcity in Karachi had affected residents and hampered businesses for years. He asserted that improved infrastructure was critical to fix this issue.

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."

She said it also complements the World Bank-sponsored $1.6 billion Karachi Water and Sewerage Services Investment Project, which aims to improve KWSB's efficiency and sustainability. On behalf of the Sindh Government Water Board MD Asadullah Khan signed a Public Private Partnership Advisory Agreement for 65 MGD Karachi Bulk Water Supply Project with IFC Regional Vice President Hela Cheikhrouhou. The signing was witnessed by Sindh Chief Minister Murad Ali Shah and others.

Published in The Express Tribune, December 8^th, 2021.