
Hyd seeks Rs69b ADB funding for water project
The proposed schemes require Rs22.538 billion funds for the water supply component and Rs47.283 billion for the sewerage.
The ADB delegation included the unit head urban programmes Mian Shaukat Shafi, Sara Azfar, Okju Jeong and Mohsen Islam Khan. The mayor was assisted by Deputy Commissioner Zainul Abedin Memon, Municipal Commissioner Zahoor Ahmed Lakhan and chief executive officer of Hyderabad Water and Sewerage Corporation (HW&SC) Tufail Abro.
"Investment in improving the urban infrastructure is the need of the time," the mayor underlined, adding that assistance from the IFI could be crucial for undertaking that development. He pointed out that the existing water filtration plants are insufficient keeping in view the rapidly growing population of the city which is estimated between 2.5 to three million people. According to him, thousands of people visit Hyderabad from the neighbouring cities on a daily basis.
He acknowledged that water shortage problem existed in the city owing to which the people are compelled to use brackish subsoil water. Ironically, Hyderabad is surrounded by the Indus River and three lakes, yet residents still face a water shortfall.
The mayor also admitted that the sewerage poodles are destroying asphalt roads in Hyderabad. He drew the ADB's attention towards the developing master plan of the city which he claimed is trying to holistically address the development and infrastructure issues.
The presentation given to the delegation about water supply related projects including proposals for building four new filtration plants of six million gallons per day (MGD) capacity each. These rapid gravity plants in Kohsar, New Hyderabad City, Tando Jam and Hatri are estimated to cost Rs2.428 billion, Rs3.096 billion, Rs6.3 billion and Rs3.695 billion, respectively.
The procurement of machinery and equipment for the existing plants also required funding of Rs5.5 billion while the laying of four-inch to 32-inch-diameter pipelines in the areas in seven Town Municipal Corporations (TMCs) will cost Rs5.1 billion.
Likewise, massive injection of funds has been sought for laying drainage lines in the city. However, it seems the authorities have disregarded the necessity of sewerage treatment plants as untreated wastewater is being dumped with impunity in the river and the canals.
Another amount of Rs5.94 billion will be spent on laying a 12-kilometre-long drain from Hyderabad bypass to Northern Sewerage Treatment Plant (NSTP). The construction of sump wells, pump houses and sewer lines of 12-inch to 48-inch-diameter will cost Rs7.45 billion in the all nine TMCs.
Hashtags

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles


Express Tribune
14 hours ago
- Express Tribune
ADB assesses feasibility of financing ML-1 project
Listen to article Experts from the Asian Development Bank (ADB) on Saturday inspected the Karachi to Rohri railway line, which forms a key section of the long-delayed Main Line-1 (ML-1) up-gradation project. ADB Chief Transport Planner Sangyoon Kim, accompanied by Pakistan Railways' chief engineer open lines, examined the 480-kilometre track. Senior railway officials including infrastructure specialists, divisional superintendents of Karachi and Sukkur and other representatives were also present. The ADB team is expected to meet the chief executive officer of Pakistan Railways, the additional general manager for infrastructure and Chinese experts currently working on the ML-1 project. According to officials, the ADB's fact-finding specialists are preparing a detailed report to assess the feasibility and potential of financing the Karachi-Rohri segment, which is part of the first ML-1 package. The proposed upgrading is vital not just for improving the country's railway system but also to support key economic projects. The completion of this section will ensure smoother and faster transportation of coal from Thar and easier access to strategic mineral resources like those in Reko Diq. The ML-1 project has been in the pipeline for nearly two decades. Its first feasibility report was prepared in the early 2000s but progress remained slow due to the lack of political will and consistent financial constraints. The project regained momentum after the launch of the China-Pakistan Economic Corridor (CPEC) project in 2015, when ML-1 was included as a strategic infrastructure scheme. Initially, China had shown keen interest in financing the entire ML-1 through concessionary loans. However, in later years, Beijing became hesitant, mainly due to Pakistan's worsening financial health, concerns over loan repayments and delays in other CPEC-related projects. The original ML-1 stretches over 1,872 kilometres, running from Karachi to Peshawar and passing through major cities like Hyderabad, Rohri, Multan, Lahore and Rawalpindi. It connects over 90 railway stations and has the capacity to handle more than 75% of passenger and freight traffic. Once completed, the project is expected to transform Pakistan Railways by reducing travel time by half, improving safety standards, increasing train speed up to 160 km per hour and significantly boosting freight capacity. It is expected to turn the country's outdated rail network into a modern, reliable and efficient transport system. Initially, the cost of upgrading ML-1 was estimated at around $6.8 billion. However, due to changing designs, economic instability and currency depreciation, the financial estimate has been revised multiple times. The current estimated cost is around $6.6 billion, though further changes are possible depending on scope adjustments and financing terms. China's reluctance to move forward with ML-1 financing has led Pakistan to approach other lenders, including the ADB. While the ADB has not yet committed funding for the entire project, their recent inspection and meetings indicate a strong interest in exploring different possibilities. Officials believe that if Pakistan is able to present a well-structured proposal and show improved project management capacity, the ADB may step in either fully or partially to fund initial phases. Pakistan Railways views ML-1 as a turning point for the sector's revival, but it is still unclear whether international lenders will step forward at a time when China has apparently pulled back. According to the officials, it will take some time – no one knows how much – before the ADB decides whether to finance the project or not, however, the railways at all levels is trying its best to get financing either entirely or partially, as train derailments in some sections are now becoming a routine, resulting in less passenger traffic.


Express Tribune
3 days ago
- Express Tribune
Industry calls for fixing basics before adopting 5G
Listen to article The Asian Development Bank's (ADB) latest report has highlighted critical weaknesses in Pakistan's digital infrastructure, warning that without urgent reform, the country risks falling further behind regional peers in broadband adoption and digital inclusion. Despite mobile broadband coverage exceeding 80% of the population, only 54% of Pakistanis are active mobile internet users. The gap, according to the ADB, is driven by high taxation, low affordability of devices and a persistent digital literacy divide, particularly among women and rural population. "Pakistan's digital potential is immense, but it remains under-utilised," said Kazim Mujtaba, President of Consumer Division at Jazz. "The fact that millions remain offline despite being covered by mobile broadband reflects a systemic issue: for many, connectivity is still unaffordable." The report notes that Pakistan remains one of the most heavily taxed telecom markets in the region, with broadband use subject to nearly 20% sales tax in addition to import duties and unpredictable spectrum pricing. These policy challenges, according to telecom operators, not only raise the cost of service for end-users but also limit investment in infrastructure. "The ADB's recommendations are closely aligned with what the industry has long been advocating," added Mujtaba. "Simplified taxation, predictable spectrum pricing and easier rights of way for fibre are not just technical fixes; they are enablers of inclusive growth." The ADB has called for a series of structural reforms to unlock Pakistan's digital economy. These include reducing the GST on telecom services to a flat 5%, delinking spectrum fee from the US dollar to avoid exchange rate shocks and facilitating public-private partnerships to expand connectivity in underserved regions. The report also stresses the importance of improving digital access in public institutions such as schools and health centres. While 5G remains a policy ambition, the industry maintains that immediate focus must be on closing the gap in 4G use. "We need to fix the basics first – access to affordable smartphones, digital literacy and reducing the gender divide," said Mujtaba. "Without that, any talk of 5G is premature."


Business Recorder
5 days ago
- Business Recorder
Outsourced power: how aid agencies engineered Pakistan's energy bureaucracy?—I
In Pakistan's power sector, aid doesn't just fund wires and transformers—it writes policy, births institutions, and designs governance frameworks. From WAPDA's unbundling to today's regional micro-hydro initiatives, foreign donors and multilateral lenders have played a decisive role in shaping the country's entire energy architecture. What looks like a domestic public sector is, in fact, a landscape engineered through external influence often with little sustained success. It began in the 1990s, when the World Bank, Asian Development Bank (ADB), and USAID launched structural adjustment programs that led to the fragmentation of WAPDA. This was no organic reform. Under pressure from lending conditions, Pakistan was pushed to carve out the power sector into new corporate entities: generation companies (GENCOs), distribution companies (DISCOs), a transmission company (NTDC), and a regulatory authority (NEPRA). These institutions were seeded, shaped, and staffed under the watchful eyes of international consultants and donor-funded technical assistance. The Pakistan Electric Power Company (PEPCO), too, emerged not from local institutional need, but from the ADB's desire to create a transition vehicle to oversee the corporatization process. NEPRA, established in 1997, was designed with heavy influence from the World Bank and USAID, importing global regulatory frameworks that were alien to Pakistan's administrative and legal culture. Its tariff formulas, licensing structures, and oversight roles mirror donor templates more than they reflect local energy realities. This donor-led architecture didn't stop at institutional birth. ADB funnelled nearly a billion dollars into its Power Distribution Enhancement Investment Program, modernizing grid infrastructure and financing smart metering initiatives. The World Bank launched its own $195 million effort in 2021 to improve governance and efficiency in HESCO, MEPCO, and PESCO. JICA upgraded NTDC's load dispatch systems. IFC and OPIC helped design frameworks to attract private investment in wind, solar, and K-Electric. Even the electricity market itself—the Competitive Trading Bilateral Contract Market (CTBCM)—was conceived, drafted, and piloted through World Bank technical assistance. And when Pakistan recently attempted to unilaterally renegotiate renewable energy contracts signed with private investors, it was the IFC, ADB, and Islamic Development Bank that issued a sharp warning: don't undermine the sanctity of contracts or risk the collapse of $2.7 billion in clean energy investment. At the provincial level, the pattern repeats. Punjab and Sindh's DISCOs were granted $200 million in January 2025 by ADB to upgrade infrastructure and adopt smart systems. Sindh also benefited from the Sindh Cities Improvement Program, which coupled power and sanitation reforms under multilateral guidance. In Khyber Pakhtunkhwa and FATA, the EU-funded PEACE program and USAID-backed Sarhad Rural Support Programme have installed hundreds of micro-hydro plants in off-grid areas. Balochistan, too, saw GIZ and other donors support rural electrification and local governance models through BRSP. These efforts, while not without local champions, largely owe their scale, structure, and sustainability to external designs. Even post-18th Amendment devolution hasn't insulated the provinces from donor penetration. Technical assistance programs by WHO and ADB continue to shape provincial energy planning and system governance. The story is similar, and in many ways worse, in the gas sector. During the mid-1980s to late 1990s, the government agreed with the World Bank to link gas prices to oil; the international market price for fuel oil became the benchmark for domestic consumers and the landed cost (including duties, taxes and other import charges) for all other consumers. The balance between consumer prices linked to international oil prices and revenue requirements of the Suis accrued as fiscal revenues to the government, allowing full-cost-recovery and providing signals to consumers about the true value of gas, thereby encouraging efficiency. However, in 2006, again on advice of the World Bank the government established a ceiling price for gas, effectively delinking it from oil and politicizing the commodity, which caused producers to lose out on significant revenue when oil prices rose sharply in 2008. When gas was made a tool for exerting political influence, the ensuing distortions left no incentives to invest in domestic E&P and no significant gas discoveries were made as a result (Figure 1). The use of gas for power generation had been promoted, both for captive generation by industries and in the grid energy mix. The landmark 1994 Private Power Policy, which allowed and incentivized industries to invest in captive power generation was designed with World Bank support and advisory from the IFC and IBRD and implemented under a PPP framework via the newly created Private Power and Infrastructure Board, again established under the World Bank supported Second Private Sector Energy Development Programme (PSEDP II). Following drying up of investment and activity in E&P and rapidly depleting domestic gas reserves, DFIs provided full support for development of LNG import infrastructure. The USAID's Energy Policy Project, alongside World Bank, IFC and ADB feasibility studies, conducted the technical and financial analyses and PPP structuring that advised Pakistan to develop LNG import capacity. ADB and IFC provided over $160 million in financing and equity to set up the Port Qasim LNG terminal. The Planning Commission's proposals to enter long-term LNG SPAs were based on feasibility studies and policy advice funded or co-commissioned by USAID's Energy Policy Project and the World Bank/IFC and ADB teams. They stressed that only 15–20-year SPAs could unlock commercially-viable financing for both the import terminals and the downstream power plants, otherwise investors could not recover the billions in upfront liquefaction and shipping assets. (To be continued tomorrow) Copyright Business Recorder, 2025