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

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The proposed Second Karachi Water and Sewerage Services Improvement Project (KWSSIP 2) will invest US$600 million of which 40 percent to be financed by IBRD. These investments will scale-up infrastructure rehabilitation and expansion, complemented by capacity building to increase operational and financial performance and improvements to the enabling environment. The project builds on the achievements of the ongoing Bank-funded Karachi Water and Sewerage Services Improvement Project (KWSSIP) that was approved in June 2019. The Project will benefit around 16 million people in Karachi.The project activities of KWSSIP 2 will be grouped into four components. Component 1: Capacity Building and Reform of KWSC, focuses on transforming KWSC into an efficient utility through technical assistance, HR reforms, NRW reduction, water safety plans, and establishment of a water quality testing tab, strengthen KWSC’s corporate governance, and increase its operational and financial performance other initiatives. These activities will contribute to strengthen KWSC’s corporate governance and increase its improving KWSC's operational and financial performance. Component 2: Safely Managed Water and Sanitation Services, focuses on providing safely managed water and sanitation services. This component will finance activities that will directly address Karachi's water supply and sanitation challenges by investing in infrastructures, including addressing water shortages, reduce network leaks, improve service quality, including in low-income areas. Component 3: Project Management and Studies, will finance the project's management costs, including coordination, supervision, risk management, and preparation for future water and wastewater infrastructure projects. Component 4: Contingent Emergency Response Component (CERC), has no funds allocated but it will allow us to reallocate uncommitted loan resources to support emergency response and reconstruction if needed.