i. Industrial and commercial business establishments and agriculture areas in the province of Sindh
ii. Residents of Karachi region
iii. The Karachi Water and Sewerage Board (KWSB)
iv. Local Government of Sindh Province
Karachi is the capital of the Pakistani province of Sindh. It is the most populous city in Pakistan and ranks sixth in the world with 14.9 million people (Census, 2017). Karachi is also the world’s sixth most water-stressed city according to the World Wide Fund (WWF). In its report, The Perils of Denial: Challenges for a Water-Secure Pakistan (2017), the city requires 1,100 million imperial gallons (MIGD) per day of water but at present, the city is only getting 550 MIGD.
The AP3F assistance is intended to support the screening of the Project to determine its viability using the PPP model. It will also support planning for more detailed project preparation and structuring work.
- Conduct technical pre-feasibility study of the Project.
- Conduct screening of the necessary land, agency and all government related procurement through PPP and other legal requirements, and prepare a template concession term sheet, which may then be developed to serve as the basis for concession agreement development during the Project preparation stage.
- Conduct commercial surveys to screen and estimate aspects of industrial, commercial, agricultural and/or municipal demand. Based on these surveys, develop a template financial model for estimating base revenue, availability payments, proposed tariff structures, economic/financial calculations, and/or value-for-money analysis that will be undertaken in detail during the Project preparation stage.
- Utilize the findings in subparagraphs a, b and c above to confirm if, and with which project structure, the Project can be viably undertaken as a PPP.
By Q2 2023, signing of PPP concession agreement for the Karachi Wastewater Treatment Plant 4 Project