KWSB is a large government owned and controlled utility providing water and sanitation services to the city of Karachi with a population of 17 million. Demand for water exceeds supply. KWSB estimates that demand is around 680 mgd based on population and expected average per capita consumption of 40 gpcd. Actual supply is around 440 mgd treated and 200 million partially treated. This seemingly small 40 mgd supply gap increases because of physical water losses in the distribution system and increasing population. As there is no metering of its almost one million residential customers (and even on a number of commercial customers) the demand-supply gap is at best, an indicative estimate.
In discussions with management, issues of concern include the age of water treatment plants and the high cost of energy to run the plants. Water supply relies on pumping rather than gravity and about 38% of recurrent costs is electricity. There is also concern over the adequacy of operator skills and lack of documented operating procedures.
Water quality at the production point does not appear to create major challenges as physical raw water attributes are quite good and as a result, after applying screening, sedimentation and rapid sand filtration, the water is seen to need treatment with chlorine only. However, chemical analyses reveal potential problems especially the presence of arsenic and heavy metals. Water quality is set to meet WHO standards at present though there are discussions proceeding on establishing Pakistan standards that would vary slightly from WHO minimum standards.
Concerns about water quality are traceable to distribution rather than production. Distribution quality can be contaminated due to the age of the pipes, the use of suction pumps by consumers and the mixing of water obtained by them from other sources with treated water provided by KWSB.
Tariffs, billing and collection is a problematic matter for KWSB, which operates at a deficit. Tariff has not been changed since its level set in 2001. Rationalization and revision is required. Tariffs are insufficient to cover costs and that the operations are only sustained by a) deferring the payment of costs such as electricity and maintenance and b) obtaining subsidies from the city and provincial administration. Another major difficulty lies in collection. There are significant arrears.
Issues that Finance have pointed out include lack of staff skills and planned development, the need for a comprehensive accounting and management accounting system and greater application of IT across the organization, including use of intranet and investment in technology to facilitate management reporting and ensure employees are fully aware of key issues and performance targets and results.
The organization is well aware of its strategic issues (such as securing water supplies, boosting revenue collections, shifting to 100% metering, increasing customer water awareness, enhancing water production capacity and over hauling distribution systems to meet service needs and reduce non revenue water even though it does not appear to have a strategic plan. The organization has a capital expenditure plan and JICA has recently funded the preparation of a master plan for KWSB that extends to 2025 but as yet this is awaiting approval.
Expert twin PNSB and representatives from both the Water and Sanitation Program and ADB conducted a diagnostic visit to KWSB from September 1 to 4, 2009. Based on observations and discussions, there are many areas that KWSB seeks to improve its operations but given the expertise available from PNSB, the proposal is to narrow assistance down to two areas - namely plant operations and production water quality.
The proposed strategy focuses on Pipri water treatment plant which will be used to demonstrate how good practices may be used to improve its operating practices, including water quality testing processes.
At a later stage, it may be possible to provide support to KWSB on other high priority areas such as billing and collection and the operations of the distribution system that impact water service performance and NRW levels.
This twinning is facilitated by Asian Development Bank.