Sindh’s chief minister was informed on Tuesday that the estimated cost of the K-IV Greater Karachi Bulk Water Supply Scheme has increased from the initial PC-1 cost of Rs25.5 billion.
During the high-level meeting that was held to discuss the project, CM Syed Murad Ali Shah was told that design and site issues, major deviations in quantities and the hike in the exchange rate might raise the project cost by Rs45 billion.
Shah was informed that the estimated cost of the K-IV scheme would now range between Rs73.4 billion and Rs75 billion, and the funds so far committed by the federal and provincial governments are Rs12.5 billion each.
The meeting, therefore, decided that in the view of the new cost, both the administrations would now need to make a commitment for contributing Rs37.5 billion each. The chief executive directed Planning & Development (P&D) Chairman Mohammad Waseem to form and head a committee to go through all the estimates once again and firm up their recommendations so he could talk to the prime minister about increasing the project’s cost.
CM Shah said the committee should comprise experts from the provincial government and the Karachi Water & Sewerage Board (KWSB), as well as the Frontier Works Organisation (FWO), which was contracted to work on the K-IV scheme.
He, however, issued categorical instructions to the FWO and the project director to continue working on the scheme so that it could be completed by the end of the next year. During the meeting the CM was briefed by FWO Director General Maj Gen Inam Hyder Malik, KWSB Managing Director Khalid Shaikh and K-IV Project Director Asad Zamin.
Zamin said K-IV is a 650mgd project of potable water to be executed in three phases: the first phase is meant for 260mgd, with a length of 121km, starting from the Keenjhar Lake in District Thatta and ending at Deh Allah Phihai in District Malir.
He said the Executive Committee of the National Economic Council (Ecnec) approved Rs25.551 billion for the project in 2014, but the cost of the scheme was based on the rates of 2010. The federal government had committed to contributing 50 per cent of the cost, while the remaining was to be borne by the Sindh government, he added.
The project director said the provincial administration awarded the project to the FWO for Rs28.187 billion in June 2016 and it was scheduled to be completed in three years. Other essential components were also to be developed, he added, listing them as augmentation, ancillary works and 50MW power plant to run two pumping stations.
Augmentation
Zamin has submitted the augmentation project of Rs18.6 billion, including Rs4 billion for land and utilities in the Sindh Planning & Development Board, for its approval from the Provincial Development Working Party.
After its approval from the P&D board it would be sent to Ecnec for further approval. The chief executive said the federal government should contribute 50 per cent of the project cost.
Ancillary works
Ancillary works of the project amounting to Rs9.8 billion have also been submitted to the P&D board for approval from the technical committee. The provincial government again expects the Centre to contribute half of the project cost.
Power plant
CM Shah has already decided to set up a 50MW power plant on public-private partnership mode. This project would have a provision to be extended to 100MW. The meeting was especially attended by Karachi Corps Commander Lt Gen Humayun Aziz. The other participants included CM’s Principal Secretary Sajid Jamal Abro and senior FWO officers.
