KWSSIP-2

The World Bank has approved the Second Karachi Water and Sewerage Services Improvement Project (KWSSIP-2) to enhance water and sanitation services in Karachi and strengthen KWSC’s operational and financial performance. Building on KWSSIP-1, this phase emphasizes structural reforms and expanded service delivery.

Component 1: Capacity Building & Reform (US$14M) – Funded by IBRD (US$5.6M), AIIB (US$5.6M), and GoS (US$2.8M), this component supports KWSC’s transformation into a climate-resilient utility. It includes:

• Technical assistance in operations, billing, GIS, asset/hydraulic management, NRW, communication etc.
• Organizational and HR reforms with gender inclusion
• Water safety plans and centralized testing lab
• Office upgrades and establishment of innovation, research, development and learning centre
• PPPs, SOPs under KWSC Act, E&S cell support, and groundwater management
• Capacity Building activities to strengthen KWSC’s corporate governance and increase finical and operational efficiency

Component 2: Water & Sanitation Services (US$958.56M): Financed by IBRD (US$223.82M), AIIB (US$223.82M), GoS (US$241.91M), and private capital (US$269M), this component targets five key infrastructure issues including bulk supply shortages, distribution losses, and wastewater gaps.

Sub-Component 2.1: Katchi Abadis Services (US$28.88M) – Expands safe water and sanitation in 7 settlements, benefiting 500,000+ people through infrastructure upgrades, ILCs, metering, and behavior change campaigns.

Sub-Component 2.2: Sewer Network Rehab (US$23.22M) – Improves sewer networks for 3.02M residents by addressing critical deterioration and overflows.

Sub-Component 2.3: Water Network Rehab (US$56.93M) – Enhances supply via pressure zoning, DMAs, modern metering, digital monitoring, and NRW reduction.

Sub-Component 2.4: Energy Efficiency (US$19.90M) – Partners with ESCOs to reduce energy use at key facilities, lower costs, and cut emissions.

Sub-Component 2.5: K-IV Augmentation (US$256.87M) – Finances 2.7 km transmission line form NIPA to Hasan Square, and three transmission mains to deliver 260 MGD treated water from new reservoirs into existing network. 

Sub-Component 2.6: Treatment Plant Upgrades (US$120.75M) – Rehabilitates 150 MGD capacity (NEK-KII, Pipri JBIC) and reconstructs 280 MGD capacity (COD, NEK-KIII) to meet water quality standards.

Sub-Component 2.7: Malir Basin Wastewater & Recycling (US$452M) – Includes 21.7 km interceptor, TP-IV treatment for 120 MGD, 50 MGD recycling plant, and distribution to industries—reducing river pollution and boosting drought resilience.

Component 3: Project Management & Studies (US$25.24M) – Supports project oversight, E&S management, M&E, and future planning through feasibility studies and tech evaluations, including trenchless technology.

Component 4: Contingent Emergency Response (US$0M) – Responds to emergencies using uncommitted project resources.