The Asian Infrastructure Investment Bank (AIIB) has sanctioned $240 million in funding for the second phase of the Karachi Water and Sewerage Services Improvement Project (KWSSIP). This funding aims to address critical issues in Karachi’s water and sanitation infrastructure, significantly improving the city’s water availability and sanitation services by 2030. The project builds on the initial $40 million allocated for the first phase.
The second phase focuses on increasing water supply, enhancing the safety and efficiency of water and sewerage services, and improving the financial and operational capacity of the Karachi Water and Sewerage Corporation (KWSC). It aims to rehabilitate existing infrastructure and construct new facilities to benefit a larger population, while continuing the essential operational reforms initiated in the first phase.
This initiative is co-financed by the World Bank, which leads the financing efforts, and follows the AIIB’s Environmental and Social Framework to ensure compliance with international environmental and social standards. The project aims to provide safely managed water to 16 million residents and improve sanitation access for 10.4 million people in Karachi by 2030.
The major challenges addressed by this phase include Karachi’s overall water supply deficit, poor water quality, and insufficient sewage treatment capacity. The project intends to overcome these by upgrading treatment plants, expanding water distribution networks, and improving sanitation infrastructure.
By tackling these critical issues, the project promises to enhance public health, environmental conditions, and the overall quality of life in Karachi. It is a key step toward sustainable urban development and meeting the growing demands of Pakistan’s largest city.