K-IV has been turned from a dream to reality, says CM Murad

KARACHI: Sindh Chief Minister Syed Murad Ali Shah has said that K-IV, the mega water project of Karachi, had turned into a reality because of sincerity of the provincial government.

“Earlier, it was a dream and it would have never seen the day of the light had it not been redesigned and included all the missing components of the project,” he said on Saturday while talking to media just after receiving presentation from Frontier Works Organisation (FWO) Commanding Officer Lt Col Usman Aftab at Keenjhar, the starting point of the project.

Sindh Minister for Local Government Saeed Ghani, Director General FWO Major General Inam Hyder Malik, Managing Director Karachi Water & Sewerage Board Khalid Shaikh, Project Director K-IV Asad Zamin, Deputy Commissioner Thatta Mohammad Nawaz Sohoo and senior officers of FWO and KWSB were also present on this occasion.

The chief minister said that K-IV project was ill-conceived in which major components such as a bridge on Nooriabad-Thatta road on the canal, 50-MW power plants, small and big bridges, land acquisition, pumping stations were not included. “When the project started the cost of the project went up and up because necessary components were being included.”

Read More: CM Murad urges federal govt to finance K-IV, KCR projects

Shah said that K-IV Project was planned for providing 650 MGD (1200 Cusecs) water supply to Karachi to be implemented in three phases. The feasibility study for the project was carried out in July 2007 which finalised the route of K-IV project (alternate route from the existing water supply system of KW&SB via Dhabeji).

“There were nine of options, of them the alternate route, which was Route No. 8 was selected based on being technically most feasible and most economical,” he said.

He recalled that the PC-1 for K-IV Project (Phase-1) for 260 MGD was prepared in 2010. “However, due to delay in processing and approvals, it was finally approved in the year 2014 by ECNEC. Actual execution of K-IV Project (Phase-1) started in June, 2016 means nine years after the feasibility study was finalized,” Shah said.

Timeline: The PC-I of K-IV project was prepared for 130 MGD in September 2007 for Rs 15.81 billion. It [PC-I] was revised for 130 MGD in May 2010 for Rs 19.29 billion. In may 2011 it was revised again and made for 260 MGD and based on preliminary design with estimated cost of Rs. 29.76 billion was submitted for approval. The PDWP approved the PC-I at 33 percent cost sharing between federal government, Sindh government and and CDGK. The CDWP rationalizedPC-I and the estimation were carried out in 2010 at market rates. The PC-I of Rs. 25.55 Billion was approved by CDWPIn Jul 2014 with 50 percent cost (Rs.25.55 Billion) between Sindh and the federal governments. The ECNEC also approved the PC-I and the administrative approval was issued by Sindh government In Aug 2014.

The Sindh government awarded K-IV Project (Phase-1) to Frontier Works Organization (FWO) in March 16, 2016 with a completion time frame of 24 months within PC-1 cost. Initial bid of FWO was well above the PC-1 cost of Rs. 25.5 billion, therefore the project was divided into two distinct packages, A and B.

Package-A: comprised of laying of conveyance system (civil works), whereas package-B comprised of electrical and mechanical component with component of civil works of pump houses and filter plants. After negotiations, package-A with reduced scope of work was signed for Rs15.254 billion in July 2016, whereas package-B was signed for Rs12.9 billion, after considerable delay and with reduced scope of work, in August 2017. Thus, total contract cost awarded to FWO was Rs28.187 billion.

The total cost of project at present has reached to Rs29.136 (including consultancy and contingencies) which is 14.1 percent of above the PC-1 cost.

Package -A: The total length of the project is 708 meters, including 300 meters intake and wet portion, 408 meters intake dry portion, Length of canal is 93,852 meters, canal in fill 38,930 meters, canal cut 54,922 meters, length of M.S. Siphon (4×84” dia pipes) 8500 meters, length of RCC conduit 10,072 meters, culverts 82, super passages 29, transition structures 29.

Package B: The package B has the length of rising main (4X72” dia) MS pipes 3200 meters, length of open canal from intake structure is 5,046 meters. It would have two pump stations and three filter plants and three storage lagoons.

The construction of boundary wall would cost Rs0.9 billion.

Syed Murad Ali Shah told the media that Project Steering Committee (PSC) was never formed for K-IV project, therefore many problems cropped up over the duration of the project because of lack of formal mechanism for redressal at higher/ policy level. He added that a broad-based composition of Project Steering Committee for K-IV project as well as supplementary projects, under chairmanship of the chairman P&D has been constituted.

Acquisition of land: The land for K-IV was acquired for Rs5 billion. The land acquired include 1052 acres private and 11,936 government land. The provincial government has released Rs3.75 billion and other tranche of funds was in the pipeline.

Unavailable K-IV land: Complete possession of K-IV Right of Way (ROW) still not handed over to FWO. The ROW possession issues brought down from about 13 km (Feb 2018) to 5.9 km (June 2018) through major anti-encroachment efforts carried out in Malir.

Most of this, 5.9 km non-possessed area on K-IV ROW is concerned with court cases because of realignment issues. Active follow-up of high court cases was being done. The realignments in K-IV route carried out at 13 locations/ 22 points from 2015 to 2017.

Energy Project: Energy project is a vital supplementary component of K-IV Project with two pumping stations. Initially, power provision of 50 MWs to the pumping stations was planned to be provided through HESCO, however, no formal decision in the matter had been taken.

However, Load Flow Study was initiated in 2017 after considerable delay, for grid stations of PS-1 & PS-2 to be linked with the existing Jhampir and Makli Grid Stations of HESCO. The same has been recently completed by SIEMENS. Case for Electric Load of Filtration Plants (R1, R2 & R3) has been submitted to KE. IDs of the same have been issued and the Demand Note is expected shortly.

In February 2018, the Sindh Chief Minister decided to establish 50 MWs Power Plant for Pumping Stations of K-IV Project (Phase 1) on Public Private Partnership (PPP) mode. The local government department notified Consultant Selection Committee (CSC) on April 30, 2018, as a first step towards implementation of this PPP undertaking. The local government department under SPPRA rules, finalised Request for Proposal (RFP), and invited technical/ financial bids for hiring of Consultant for preparation of Feasibility Report and provision of Transaction Advisory Services. Letter of Acceptance issued to the successful bidder who are preparing Technical Feasibility Report.

Syed Murad Ali Shah told the media that the Sindh government has released Rs15.05 billion while the federal government has released Rs12.15 billion. Still Rs51.3 billion are required which include Rs26.7 billion by Sindh government and Rs24.6 billion by federal govt.

“We would finalise the detailed cost estimates of the project which were being estimated at Rs75 billion,” he concluded.