KARACHI, Nov 18: The fate of the long-awaited solid waste management project hangs in the balance as the city government is considering reviewing the agreement that gave the responsibility of disposal of garbage from the city to a Chinese firm, which has not initiated even the groundwork despite the passage of over 10 months.

The firm, Shanghai Shen Gong Environmental Protection Company Limited, had won the contract of integrated municipal solid waste and hospital waste management project and it signed an agreement with the city government in January under which the collection and disposal of solid waste was its responsibility for 20 years and it was to get $20 per tonne for lifting and disposal of garbage.

However, the handing over of the solid waste management had been delayed for at least five times as the Chinese firm failed to bring in the required machinery.

Well-placed sources have told Dawn that on Nov 15, 2008 the city government received a letter, dated June 6, 2008, from the Chinese firm through which it informed the authorities concerned that it was going to import 290 vehicles for lifting and disposal of solid waste and, therefore, it wanted its vehicles to be exempted from customs duty.

The sources said the firm requested the city government to approach the Central Board of Revenue for waiver of the customs duty on the vehicles. However, the Chinese firm did not mention any timeframe about the arrival of the vehicles in its letter addressed to the city nazim, the district coordination officer and the executive district officer for municipal services.

Confirming the receipt of the backdated letter, EDO (Municipal Services) Masood Alam told Dawn that the city government would ask the Chinese firm to furnish proof of importing 290 vehicles with their bill of landing. “They sent a letter dated June 6 to me on Nov 15 seeking exemption from customs duty, but they did not mention the date and time of arrival of their consignment,” he said.

Mr Alam said the Chinese firm had failed to take over the city’s solid waste management in more than 10 months of the agreement.

The sources disclosed that to avoid legal matters the city government did not annul the agreement unilaterally and without completing a process, which included serving of a show-cause notice on the company.

They said the city government realised concerns of the Chinese firm, but they had to understand that the city government could not afford any further delay. “Whenever they sought time, we gave them, but now it is their (Chinese) turn to do something on the ground,” said an official.