Lahore: The Asian Infrastructure Investment Bank (AIIB) has approved financing worth USD 235 million for the Lahore Water and Wastewater Management Project to enhance the city’s water supply system and curb pollution in the River Ravi.
The project aims to ensure a sustainable supply of safe drinking water while addressing environmental degradation caused by untreated sewage discharge into the river. It will also help the Lahore Water and Sanitation Agency (LWASA) strengthen its operational capacity and move towards financial sustainability.
Under the initiative, new infrastructure will be developed to divert water from the Banbawala Ravi Bedian Depalpur (BRBD) Canal and establish a modern surface water treatment plant. The project further targets a reduction in non-revenue water (NRW) from 45% to below 20% through the replacement of ageing pipelines that contribute to leakage and wastewater infiltration.
Another key component involves installing bulk and household-level water meters to achieve complete metering, billing, and collection. Currently, around 90% of Lahore’s water connections remain unmetered, leading to excessive consumption and system losses.
The project also includes the enhancement of water quality monitoring systems, the upgrade of laboratory facilities, and the training of specialised staff for the maintenance of treatment plants. Technical assistance will be provided to help develop a regulatory framework that encourages public-private partnerships in the water sector.
On the wastewater side, Lahore currently lacks any treatment facility, with all domestic and industrial waste being discharged directly into the River Ravi — an estimated 640 million gallons per day. The contamination has severely polluted the river, which supplies up to 82% of Lahore’s groundwater recharge, making it unsafe for consumption and affecting soil productivity.
The LWASA has already prepared a feasibility plan for the construction of six wastewater treatment plants, three of which will be financed by the AIIB, while the remaining will be developed through other international partnerships.
Officials believe the AIIB-funded project will mark a major step toward restoring the River Ravi’s ecosystem and securing a cleaner, more reliable water future for Lahore.
Samra Zulfiqar, a real estate analyst at Zameen.com, is passionate about finding projects that offer buyers the best returns. Her keen insights spotlight the market’s most promising opportunities.
