APPROVAL DATE: Sep. 26, 2019 SECTOR: Water REGION: Pakistan

Pakistan: Karachi Water and Sewerage Services Improvement Project

Project Objective:

The Project will concentrate on improving water and wastewater service delivery; building technical and managerial capacity; upgrading infrastructure; enhancing level of service; and expanding the services to the residents of Karachi. The Project has three components:

1. Reforms

This component will support reforms within KWSB such as design and implementation of a communication program; an inclusive customer services and relations regime; regional customer service centers; a stakeholder identification and engagement program; an institutional reform program for improved service delivery, accountability and possible outsourcing options; and customer identification surveys. To increase revenue generation and efficiency, the Project will support new billing and collection system prioritizing large customers; a tariff study; a new Human Resource system; Non-Revenue Water (NRW) control program including meter maintenance program; and an asset management program. Sustainability of reforms will be ensured by complementary support in technical matter. The Project will also assist in devising a strategy to improve services to areas which are currently not served or underserved by KWSB.

2. Securing Sustainable Water Supply and Sanitation

This component will assist KWSB to improve the water supply and sewerage services in Karachi. Wastewater. This sub-component will support increasing the capacity of the sewage system by constructing 180 million gallons per day wastewater collection and treatment infrastructure in the Malir river basin as part of Greater Karachi Sewerage Project, S-III. This involves construction of interceptors that run along Malir river, trunk sewers and a new sewerage treatment plant. This subcomponent will also support rehabilitation of priority sewerage networks for safe disposal of sewage and reduction of energy consumption at sewage pumping stations.

Water Supply. This sub-component will improve the distribution system in targeted low-income communities for improved service delivery; and support rehabilitation of the existing and construction of new water treatment plants for potable use through providing gap financing. The Project will also assist KWSB to reduce NRW through installation of bulk meters for large customers; pilot District Metering Areas in target localities where domestic metering would be introduced; and rehabilitate priority water supply networks.

3. Project Management and Studies

The component will mainly support the technical studies, engineering designs, preparation of tender documents and implementation support for component 1 and 2. Water resource and water balance studies for Karachi will look into potential for alternative water sources such as reclaimed wastewater, in particular for industrial use, and seawater, via desalination. The component will also support the KWSB to enhance institutional capacity through staff training and other capacity building tools.

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