Sindh Chief Minister Approves Major Funding for Karachi's Wastewater Treatment Initiatives
Sindh Chief Minister Syed Murad Ali Shah, while presiding over a key meeting, has taken decisive steps to address Karachi's critical wastewater management challenges. The chief minister reviewed ongoing wastewater treatment and recycling initiatives, approving a substantial allocation of Rs5 billion to ensure the secondary treatment of 100 million gallons per day (MGD) from the TP1 facility by December 31. Additionally, he set an ambitious interim target of treating 30 to 35 MGD by June 30, underscoring the government's commitment to immediate action.
"This is not just a long-term vision. Karachi will see tangible improvements this year," declared Chief Minister Murad Ali Shah, emphasizing that wastewater treatment remains a top priority for his administration. He further described the TP4 initiative as a "transformational step" for the city's water management system and directed all stakeholders to accelerate decision-making processes to avoid delays.
Urgent Measures and Financial Commitments
The meeting highlighted the completion of ongoing treatment plants, the urgent revival of TP1, and the advancement of the flagship TP4 Wastewater Treatment & Recycling Project, which is being implemented through a Public-Private Partnership (PPP) model. The chief minister stressed the urgency of the situation, stating, "The funds will be provided, but the work must start immediately. Delays are not an option when it comes to Karachi's wastewater management."
To facilitate smooth execution, Murad Ali Shah instructed the Mayor of Karachi, the Water Board, and the Planning & Development Department to convene and resolve all pending issues. It was revealed that a Memorandum of Understanding (MoU) was signed in December 2025 between the Karachi Water and Sewerage Corporation and Enertech Holding Company under a Government-to-Government framework, which has significantly boosted investor confidence.
Global Support and Project Scope
Major funding commitments have been secured to ensure the financial feasibility of the TP4 project. These include:
- The World Bank pledged $100 million in Viability Gap Funding.
- The Asian Development Bank committed $50 million.
- The Sindh government contributed Capex funding of $80 million.
Designed under a DBFOMT (Design, Build, Finance, Operate, Maintain, and Transfer) model, the TP4 project encompasses:
- A 22-kilometre interceptor with a capacity of 200–250 MIGD.
- A wastewater treatment plant of around 100 MIGD.
- A recycling plant of approximately 40 MIGD to supply reclaimed water to the Korangi Industrial Area and Korangi Creek Industrial Park.
Addressing Land Issues and Future Milestones
To overcome land-related delays, Murad Ali Shah issued clear instructions: "We must accelerate the resolution of land issues at the TP4 site. 140 acres are already free from encumbrances and sufficient for construction. The Deputy Commissioner must immediately survey, demarcate, and officially allocate the land to avoid any further delay."
The meeting also included a briefing on feasibility milestones. The Technical Feasibility was submitted in the first phase on February 18, 2026, with the second phase involving Financial Feasibility expected by mid-March 2026. The project aims for financial close by October 2027, with commercial operations targeted for the end of 2030.
