Federal govt lags behind in its commitment to fund two Karachi projects

The release of funds from the federal government for two water and sewerage projects of Karachi didn't register any improvement.
According to the data for almost the first nine months of the current fiscal, one of the two projects didn't receive any funding at all while the other received only half of the amount allocated.
The Greater Karachi Water Supply Scheme (K-IV) project and the Establishment of Combined Effluent Treatment Plan for industrial areas of Karachi had been scheduled to be completed by Sindh and federal governments jointly by sharing the financing of the project.
Federal and provincial governments have to equally share K-IV project whereas the former has to share 33 percent of the cost of the CTEP.
The federal government allocated Rs400 million in the Public Sector Development Programme (PSDP) of financial year 2019-20. However it didn't release any fund in the nine months (July-March) of the current fiscal.
The total cost of the project is Rs25.510 billion, of which the federal government has to contribute Rs12.775 billion.
The project is designed to provide 650 million gallons of water daily to Karachi in three phases.
On the other hand, the federal government allocated Rs500 million for the CTEP in the PSDP 2019-20 and in the first nine months of the current fiscal, the Centre released Rs250 million for it.
The federal government's share in the financing of the project stands at Rs3.893 billion.
Half of the allocated amount was released in the nine months of the current financial year.
This amount was released in the first week of December, but since then no amount was released.
The project's total cost stands at Rs11.7 billion, and it was planned to be completed by June 2021.
The share of the federal government is Rs3.893 billion and the rest would be contributed by the provincial government of Sindh.

Copyright Business Recorder, 2020

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