Karachi: The Asian Infrastructure Investment Bank (AIIB) has approved USD 240 million in financing for the second phase of the Karachi Water and Sewerage Services Improvement Project (KWSSIP), aimed at tackling the city’s persistent water and sanitation challenges.
This fresh funding will build on the USD 40 million provided during the project’s first phase and is expected to significantly scale up efforts to improve water availability, service reliability, and operational efficiency in the city. The project is also co-financed by the World Bank, which is serving as the lead financier.
Phase II of KWSSIP will focus on enhancing Karachi Water and Sewerage Corporation’s (KWSC) capacity, rehabilitating old infrastructure, constructing new facilities, and implementing key operational reforms. These upgrades are projected to benefit 16 million people with access to safely managed water and improve sanitation for 10.4 million by 2030.
The initiative also targets three major issues facing Karachi’s water and sanitation system: widespread water shortages, poor water quality, and limited sewage treatment capacity. The new phase of the project will be implemented in line with AIIB’s Environmental and Social Framework to ensure compliance with international safeguards.
This strategic investment aims to address the deep-rooted inefficiencies of Karachi’s aging water system while aligning with long-term goals for sustainable urban development.
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