World Bank to Approve $240 Million KWSSIP-2 Project for Karachi
ISLAMABAD, December 12, 2024: The World Bank’s Board of Executive Directors is expected to approve the “Second Karachi Water and Sewerage Services Improvement Project (KWSSIP-2)” worth $240 million on Thursday. The initiative aims to improve access to safely managed water and sanitation services in Karachi and enhance the financial and operational performance of the Karachi Water and Sewerage Corporation (KWSC).
Sources indicate that KWSSIP-2 will be on the agenda for the board meeting. The project encompasses four key components designed to achieve its development objectives:
- Capacity Building and Reform of KWSC
This $14 million component will focus on enhancing KWSC’s operational efficiency, climate resilience, and accountability through technical assistance, capacity building, organizational reforms, and the establishment of a centralized water quality testing laboratory.
- Safely Managed Water Supply and Sanitation Services
With a budget of $958.56 million, this component will address Karachi’s critical water and sanitation challenges, including expanding services in underserved areas, rehabilitating water distribution networks, reducing water losses, and upgrading sanitation systems to benefit millions of residents.
- Project Management and Studies
Allocated $26.44 million, this component will finance project coordination, risk management, and preparation of future water and wastewater infrastructure projects under the master plan.
- Contingent Emergency Response Component
This zero-allocation component provides flexibility for the Government of Sindh to reallocate funds to support emergency response activities in the event of an eligible crisis.
The project is co-financed by the International Bank for Reconstruction and Development (IBRD), the Asian Infrastructure Investment Bank (AIIB), the the Government of Sind. It builds on the progress made under KWSSIP-1 and aims to address structural inefficiencies in Karachi’s water and sewerage systems, particularly in underserved communities.
The significant progress in preparing the project and obtaining necessary government approvals was made possible through the dedicated efforts of Mr. Usman Moazzam, Project Director of KWSSIP. His leadership and commitment ensured timely coordination among stakeholders and adherence to regulatory requirements, paving the way for this ambitious project to move forward.
The approval of KWSSIP-2 is a major step toward providing sustainable water and sanitation services for Karachi’s residents and transforming KWSC into a modern utility.