Punjab seeks $329m AIIB loan for Lahore water, sanitation overhaul

Published November 17, 2024 Updated November 17, 2024 06:58am

ISLAMABAD: The Punjab government has submitted a $329 million project proposal to the Asian Infrastructure Investment Bank (AIIB) through the federal government. The initiative aims to ensure a sustainable supply of clean water, mitigate environmental degradation and strengthen the institutional capacity of Lahore’s Water and Sanitation Agency (Wasa) to improve service delivery.

The project focuses on constructing surface water treatment infrastructure, upgrading Lahore’s water supply networks and building wastewater management systems to address issues of untreated sewage, urban flooding and dwindling groundwater resources.

According to the project document, investment in safe water supply infrastructure will comprise the construction of a siphon to transport water in the Banbawala Ravi Bedian Depalpur (BRDB) Canal across Ravi River (the Ravi Siphon) and an intake structure at the BRDB canal; construction of potable water infrastructure, including a raw water channel from the intake structure, a surface water treatment plant, pumping stations, transmission and distribution networks; implementation of a Non-Revenue Water reduction programme through the rehabilitation of old and dilapidated network infrastructure; metering commercial and domestic connections; and improvements in the billing and collection system.

Under the investment in wastewater and drainage management, the project will consist of the construction of two new trunk sewers and a new pumping station to safely transport wastewater for disposal and improve the urban environment and flooding by rehabilitating storm water drains.

The construction of the trunk sewers will also allow the decommissioning of old pumping stations, which will reduce Lahore Wasa’s operating costs.

The federal government has assured the AIIB that the Lahore agency will use the bank’s ESF to guide their environmental and social due diligence and preparation of relevant instruments. The agency has carried out preliminary due diligence, including three environmental and social impact studies of the project, in accordance with national policy and requirements.

Published in Dawn, November 17th, 2024

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