Pakistan: Karachi Water and Sewerage Services Improvement Project-2 (KWSSIP-2)

approved

The Project will deepen the reforms undertaken under the Phase-1 project and significantly scale-up the infrastructure investments to improve water supply and sewerage services in Karachi. The investments in rehabilitation of existing and construction of new infrastructure will enhance the development impacts by reaching more beneficiaries, at the same time, building support for continued mainstreaming of the operational reforms and new investments. Proposed activities are grouped into four components: Component A. Capacity Building and Reform of KWSC: This component will continue to build capacity and improve operational performance and sustainability of KWSC by supporting institutional reforms; revenue management, customer care and communication; non-revenue water reduction; preparation and implementation of water safety plans; water wastage reduction program and water audits. Component B. Safely Managed Water Supply and Sanitation Services: This component will invest in key water and sewerage infrastructure to address three interlinked structural problems in Karachi's water and sanitation system - the overall supply shortfall; the low water quality; and the lack of sewage treatment capacity. Component C. Project Management and Studies: This component will support Project management costs and finance technical assistance for advance studies for potential subsequent water and wastewater infrastructure projects in Karachi. Component D: Contingent Emergency Response Component with USD0 million allocation. The Borrower may request the Bank to reallocate Project funds for the provision of immediate response to an eligible crisis or emergency, as needed. This component would draw funds from the uncommitted loan resources under the Project from other Project components to cover emergency response.