The World Bank and Asian Infrastructure Investment Bank (AIIB) will provide funds to finance the safe water supply project in Karachi. The project will eventually improve the operational capacity of Karachi Water Supply Board to deliver safe and reliable service on regular basis to the public in the capital of Sindh.
Chinese Asian Infrastructure and Investment Bank (AIIB) has recommended the concept decision on the project to improve the water and sewerage services in Karachi, the executive board of AIIB will provide $160 million loan to fund the project.
Another $160 million will be injected by the World Bank into the project along with Sindh government’s contribution of $80 for the project.
A total funding of $400 million will be injected collectively by Sindh government, World Bank and Asian Infrastructure Investment Bank (AIIB), the project will help the department Karachi Water Supply Board to improve its operational capacity, sustainable water supply, its financial position as well as enabling the environment for future private sector investments in water supply and wastewater treatment.
The report prepared by AIIB says Karachi is the city where there are a lot of informal settlements and proliferation by informal service providers. The city is excessively urbanizing at the cost of green areas and open planes, also the city’s infrastructure is not able to keep up with the rapid urbanization, and the city is unable to provide basic municipal services to the increasing population per kilometer, the report said.
The project will additionally increase the capacity of the Sewage system in Karachi, it will construct an infrastructure having a capacity of treating 180 million gallons of wastewater per day. The infrastructure will be constructed at Malir river basin which will be the part of broader Karachi Sewerage project.