Cost of Greater Karachi Water Supply Scheme Increases by 1132 Percent

The cost of Greater Karachi Bulk Water Supply Scheme 260 MGD (K-IV) has gone up by almost 1132 percent from the original estimates of Rs. 10.22 billion to Rs 126 billion, official documents have revealed. As per the original PC-I, the cost of Greater Karachi Bulk Water Supply Scheme K-IV 650 MGD was Rs. 25.552 billion, however, now the scope of work has been reduced to just 260 MGD (40 percent of the original work) while the cost has escalated to Rs. 126 billion, official documents available with ProPakistani show. As per the revised PC-I, in 2014 the estimated cost of the 650 MGD Greater Karachi Bulk Water Supply Scheme K-IV was Rs. 25.552 billion, which means that the cost of 260 MGD was around Rs. 10.22 billion. However, now the Executive Committee of the National Economic Council (ECNEC) has approved the project with the revised PC-I with a limited scope of work at Rs. 126 billion which is almost 1132 percent higher than the initial estimates for the same work. In December last year, the Central Development Working Party (CDWP) had considered 1st revised PC-I for Greater Karachi Bulk Water Supply Scheme K-IV 650 MGD at Rs. 191.19 billion. However, the forum had recommended the project at the reduced scope to 260 MGD water at the cost of Rs. 126 billion. The cost will be equally shared by the federal government and the government of Sindh. The project aims to meet the growing water demand of Karachi and to provide a dependable and sustainable water transmission system from its more than 100km away source of Keenjhar Lake to three reservoirs around the city. As per the revised PC-I, the estimated cost of 650 MGD Greater Karachi Bulk Water Supply Scheme K-IV was Rs. 25.552 billion and the completion time was 2018. However, due to multiple reasons, the project could not be executed. In the 1st revised PC-I, the cost of the project of 650 MGD had gone up by 648 percent to Rs. 191.19 billion and the completion time was also enhanced to 2024. However, later on, it was agreed that the project will be executed in three phases and the first phase will be 260 MGD followed by another two phases of 260 MGD and 130 MGD. The completion time of the project is 87 months. It is estimated that the annual electricity cost of the project will be around Rs. 13 billion, but since the scope of work has been downward revised therefore these estimates will also go down, the official said. The main revenue source for the project are the residential and industrial consumers and it is planned that the residential consumers will be charged at Rs. 1 per gallon, while the industrial consumers will be charged at Rs. 0.30 per gallon, the document reveals.