Introduction

KWSSIP is committed to improve service delivery and ensure financial viability of the Karachi Water and Sewerage Board by pledging a Commitment of Cooperation; the CoC outlines a reform roadmap aligned with the objectives of the proposed Series of Projects (SOP). The CoC vision is to transform KWSB by 2030 into a modern, efficient utility, accountable to its customers and capable of providing safely managed water and sanitation services, while recovering costs and raising private finance in a three-phase transformation plan:

• 2021
• 2025
• 2030

The core institutional reform is expected to be an amendment of the KWSB Act, including critical changes such as (i) the authority of the Managing Director (MD) or Chief Executive Officer (CEO) to recruit staff without interference from the KWSB Board of Directors or the Government; (ii) changing the service rules following principles of diversity, accountability and transparency; (iii) establishing tariff setting rules based on affordability and O&M cost recovery; and (vi) allowing the KWSB Board to approve tariffs at its sole discretion based on the new tariff setting rules and public consultations. Other key reform steps outlined in the CoC aim for improvements of service delivery and financial viability, including with measures such as the development of a detailed private sector participation strategy; independent financial audits; an increase in female staff, and specific targets for service continuity and non-revenue water reduction. To implement the CoC after project approval, a KWSB Reform Working Group has been established by the Department of Local Government.