IFC to help Sindh govt on drinking water supply project for Karachi

KARACHI: The International Finance Corporation (IFC) signed a landmark agreement on Tuesday to help the Sindh government in the structuring of a public-private partnership project that will provide clean drinking water to nearly one million people in Karachi, a statement said.

With a population of over 16 million, Karachi is Pakistan’s largest city, economic hub, and main seaport. But it has struggled to maintain a reliable fresh water supply.

Under the agreement, IFC, a member of the World Bank Group, will advise the Karachi Water and Sewerage Board (KW&SB) on the structuring and tendering of a project to build new infrastructure to boost the city’s water supply.

The project, which will be executed by a private company, will include water treatment facilities and what’s known as a bulk water conveyance system. The system will supply Karachi with 65 million gallons of water/day from Keenjhar Lake, some 140km away.

“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 project will provide the framework for future greenfield water infrastructure projects,” Sindh Chief Minister Syed Murad Ali Shah said.

Pakistan ranks third globally for acute water shortages, according to the International Monetary Fund. This signing follows another landmark public-private partnership for an advisory agreement between IFC and KW&SB 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.

“Water scarcity in Karachi has affected residents and hampered businesses for years. Improved infrastructure is critical to fixing this,” IFC’s senior vice president, Operations Stephanie von Friedeburg said.

“This project demonstrates the power of the private sector to help the governments modernise infrastructure, jumpstart economic growth and improve the lives of the people.”

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