K-IV water project: TIP draws attention of Sindh CM to ‘malfeasance’, delay

Business Recorder

KARACHI: The Transparency International-Pakistan (TIP) has drawn the attention of Chief Minister Sindh Syed Murad Ali Shah towards the delay in the completion of Karachi 260 MGD K-IV water supply project and design change by Wapda by introducing GRP/steel to ‘benefit’ pipe suppliers, resulting in increase in cost from Rs45 billion to over Rs100 billion.

Yasmeen Lari, Chairperson TIP in a letter to Sindh Chief Minister Tuesday stated that TIP has received a complaint on the allegation of undue delay in the completion of 260 MGD K-IV Water Supply Project, which has been stopped since January 2018, along with changes in design by Wapda by introducing GRP/Steel pipe in the duct of already constructed open channel, resulting in a change in the Project Scope to increase the cost from Rs. 45 billion to over Rs.100 billion under pressure of pipe mafia, which is likely to cause a loss of Rs. 55 billion to the exchequer. The letter stated that there is urgency for the completion of K-IV as soon as possible within next 18 months so that an extra 260 MGD water becomes available to citizens of Karachi who are currently suffering from severe water shortage.

The TIP observed that TI-P strongly believes that the GoS Technical Committee recommendations of March 2020, developed as a result of deliberations on the NESPAK Design Review Report, should be adopted without delay.

The government of Sindh needs to maintain the existing route/alignment for K-IV Project and allow the resumption of works on ground once the rectification/modification suggested by the Technical Committee are finalized by M/s. OCL along with submission of revised PC-I by KW&SB to the competent forum for approval.

It maintained that Government of Sindh needs to approve implementation of 260 MGD of K-IV Project as envisaged and planned earlier, preferably adopting Option-I, referred in March 2020 report, in view of its advantages & early completion of the project.

Corresponding augmentation works of Phase-I of K-IV Project need to be taken up for implementation as a priority project under World Bank/AIIB-funded KWSSIP Project, TIP observed that stated that wherever required along the alignment of the Project, Government of Sindh needs to facilitate K-IV Project Authority in early acquisition of land.

It suggested that subject to the approval of Government of Sindh, M/s. OCL needs to carry out detailed redesigning accordingly and submit complete and comprehensive Modified Design Report, incorporating all the technical issues discussed hereinabove and M/s OCL needs to subsequently provide the precise cost estimation of the approved option in light of the modified design with due diligence and professionalism. M/s OCL will also prepare revised PC-I of Phase-I K-IV to be submitted to KW&SB for onward submission to competent authority for approval.

The TIP noted that it is also clear that prima facie Wapda has committed violation of PPRA Rule No. 30, (no evaluation criteria shall be used for evaluation of bids that had not been specified in the bidding documents) by qualifying M/s Techno Consult JV, against condition of Conflict of Interest Condition in the RFP.

The TIP noted that based on Wapda’s past record, K-IV project completion is likely to be further delayed by 4/5 years, while the cost is likely to increase from Rs. 45 billion to over Rs. 100 billion, record, which should not be allowed.

The Transparency International Pakistan requested the Chief Minister Sindh to examine the above allegations in the light of TI Pakistan observations and recommended that Government of Sindh should consider reconvening the Technical Committee constituted on October 30, 2019, to examine Wapda proposal of K-IV Project, and review the design change due to which cost of K-IV 260 MGD is likely to increase by 100 percent, as a result of change of contractor & consultants by Wapda. It held that it is the responsibility of Sindh Government to ensure that Karachi gets additional 260 MGD water by end of 2022.

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