26 January 2004	Monday	03 Zilhaj 1424

Water is source of life and time is not far off when all easily accessible sweet water sources would diminish. Non-availability of clean drinking water is becoming a critical issue in many parts of the world and has resulted in increased incidence of hepatitis and other water-borne diseases.

Karachi, a mega city of over 12 million people, is presently facing water shortage of around 100 million gallons per day (MGD) as against its totals requirements of around 600MGD. Efforts are afoot to enhance the supply from existing sources. In addition, possibilities are being explored to increase the supply of potable water through seawater desalination.

There have been reports about the desalination plants being planned by the Karachi Port Trust (KPT), the Defence Housing Authority (DHA) and the Karachi Water and Sewerage Board (KWSB). Status of these projects, as gathered from reports, is presented below:

a. The federal minister for communications has been quoted saying that the KPT is conducting its own feasibility studies of two desalination plants to be constructed soon. One desalination plant will provide water to Manora and Bhit Island, and the other to Karachi city. It may be mentioned that feasibility study of the KPT's 25 MGD capacity was earlier funded by a grant from the US government. The desalination plant included a 15 MW power generation plant, to supply electricity needed for the process.

b. A contract has recently been signed at Karachi between the DHA, Cogen Limited and the Siemens A.G. for establishing a combined cycle power plant for electricity and seawater desalination to be installed at DHA Phase VIII. Details of the project have been forwarded to the ministry for final approval. The project would have an installed capacity of around 94 MW and the electricity generated would be distributed through the KESC network.

The desalination plant would provide 3 MGD potable water by converting seawater into drinkable water, which will be distributed through Clifton Cantonment Board at a reasonable price. The state-of-the-art desalination plant is to be completely manufactured in Germany.

c. The KWSB has plans to build a seawater desalination plants of unbelievably large capacity of 450 MGD for which the feasibility report is about to be started. The federal government has approved an amount of Rs23 million for the purpose and has already released Rs3 million as the first instalment.

The DHA, the KPT and the KWSB are planning to install seawater desalination plants of 3 MGD, 25 MGD and 450 MGD capacity, respectively. Variation in the proposed capacity of the plants is very wide. Desalination technologies are relatively new and cost-effective technologies are presently being developed.

With a view to facilitating the preparation of feasibility studies and implementing cost-effective projects, the following suggestions are offered for consideration by the government and the respective authorities undertaking the projects.

1. Many things about the technology, process, capital cost, environment aspects, etc., can be learnt from the desalination plants already in operation in the country, as under:

(i) Hubco Power Plant at the Hub Chowki, Balochistan, has in operation a desalination plant to meet water requirements for power generation, as well as for the housing colony. In addition, drinking water is said to be provided to the villages in the vicinity of the power plant;

(ii) The Chinese company that is building deepwater commercial port at Gwadar has already installed a seawater desalination plant at the site to meet potable water requirements during the construction phase. On completion of Phase 1 of the port project, the plant will be given to Pakistan as a gift to be used to supply potable water to the port and the inhabitants of Gwadar; and (iii) a desalination plant has been installed in Cholistan at Derawar Fort, about 70km from Bahawalpur, for the treatment of brackish water to make it fit for human consumption.

This plant was reportedly installed by the Cholistan Development Authority (CDA) in September 2003, at a cost of over Rs0.70 million in six months. It has the capacity to treat 3,000 gallons of water within eight hours at nominal operational cost. This plant could serve as a pilot desalination plant for possible duplication in cities which have brackish ground water.

2. Developed countries might be approached seeking details and data about cost-effective desalination technologies considered appropriate for our conditions. It may be mentioned that the federal minister for industries and production had sought Austria's assistance for the setting up of a desalination plant near Karachi. It has also been reported that to tackle the water shortages caused by periodic dry spells in the region, China has offered to Pakistan a special package that incorporates low-cost desalination technology developed by its Tianjin Institute of Seawater Desalination.

The technology is cheap and reasonable compared to other technologies, due to which the production cost of one ton of potable water produced from seawater has been reduced from 85 cents to 60 cents. Also, in a ceremony at the KPT last year, the US Ambassador to Pakistan while signing a $0.287 million grant agreement on behalf of the US Trade Development Agency, reportedly said that the United States is on the forefront for providing desalination technology to any part of the world. There might be other countries offering similar or better technologies for our needs.

3. The KPT is said to be already working on the preparation of seawater desalination plant for Karachi, while the KWSB might start work now on receipt of the first instalment from the government for the feasibility. A good feasibility lays the foundation for selection of a viable project, its financing and successful implementation within the budgeted cost and time. It is a major exercise that propounds careful scrutiny of all major parameters of the project, particularly the final recommendations. The following points may be kept in view in the context of preparation and scrutiny of the feasibility study:

a. The feasibility report shall have better credibility if the consultants working on the report are reputed for their technical competence and for the quality of reports. In addition, the Terms of Reference (ToR) including the outline of the feasibility report may be carefully analysed to cover all requisite areas for investigation before the consultants are awarded the assignment. It may be noted that a desalination plant of purely commercial type is yet to be installed in the country. There is need to determine the economic size of such a plant based on different technologies and their cost-effectiveness.

b. Capital cost including the financing and reproduction cost and the proposed means of financing may be reviewed carefully. The feasibility report must have details of tariff determination including the detailed assumptions for all inputs and outputs. The level of tariff would determine the profitability of the proposed company. In many cases, tariff can make or break the project.

c. The feasibility report should also include details about other desalination plants of similar capacity based on the same technology and already operating in other parts of the world. Comparative data on capital cost and the cost of one million gallons desalinated water so produced may also be provided. The stakeholders may not opt for a technology based on which there are no existing successful projects in operation.

d. Almost all areas of Karachi including areas under the DHA administration have ground water that is brackish and could also be desalinated, perhaps cheaply than the seawater. It needs to be confirmed if the selected technology would be suitable for desalination of brackish water and whether the desalinated water so produced will, cost- and quality-wise, be comparable with the desalinated water produced from seawater.e. Environmental aspects of the desalination project, including the power generation plant at the proposed locations may be fully assessed. Karachi already has high level of pollution and other environmental hazards.

4. The KPT, the DHA and the KWSB must have teams of experts to evaluate various aspects that would be analysed and examined in the feasibility report to be submitted by the consultants employed for the purpose. The same process should apply even if the study has been done by the in-house experts. Members of the teams must be up-dating their knowledge and collecting data on technology, similar desalination plants, operating costs, financing possibilities, etc.

In the meantime, the assumptions on which the project feasibility would be developed including financial incentives and concessions, capital costs, financing plan, borrowing cost, level of pre-production expenses, etc., would need to be examined within a short time of the submission of the feasibility report. Time schedule for the preparation of the feasibility report, government approval for project parameters or incentives and for the implementation of the project might be properly provided.

5. The KPT, the DHA and the KWSB would all benefit if there were close working relationship in the preparation and scrutiny of the feasibility studies, as well as in the implementation of the desalination plants finally agreed for execution. The Managing Director, the KWSB until a few weeks ago was heading the DHA. His knowledge of the DHA desalination plant might be useful for realization of the desalination plant now being considered by the KWSB.

Also, the DHA and the KPT would be assuming a new role of the bulk seller of desalinated water to the KWSB or other water utilities. The tariff at which water is sold to the utility/bulk consumers will be of crucial importance with big potential for disagreement. The idea is to sort out difficult issues early on so that, thereafter the implementation and operation of the projects is smooth and profitable.

The final tariff to be borne by the people of Karachi should also be reasonable and not exceeding the existing rates. In order to foreclose the possibility of disagreements on water tariff, it would not be inappropriate to suggest to the government for appointing a regulatory authority to determine bulk tariff for the desalinated water so produced and marketed.

6. Like electricity, large quantity of water is lost in distribution. The need for fresh capacity can be reduced to the extent wastage is controlled with better water management. Karachi and other big cities are not likely to overcome drinking water shortages without commitment to a long-term Water Vision, of which some of the main element could be as under:

a. Recognition by the people that drinking water (or for that matter even irrigation water) is fast becoming scarce and conservation measures have to seriously start now. Water management measures are to be initiated in houses, mosques, factories, commercial enterprises, etc., in every place where clean water is consumed. Wasteful use through carelessness or pipe leakages or mal-functioning taps, etc., has to be controlled. These days every where drinking quality water is used to flush toilets. The switching over to the use of brackish water for the purpose can save large quantity of drinking water.

b. Building of water infrastructure requires lot of financial resources, which mostly are arranged by borrowings or in exceptional cases through grants from friendly countries or institutions. At present a small portion is met through user charges. The user charges need to be rationalized along with the installation of water meters. Households should pay charges according to the quantity of water consumed. This is a pre-requisite to sustain water utilities on long-term basis and would help the consumers realize the importance of water conservation.

c. The KWSB and other similar utilities must realize that under the WTO regime from January 2005, clean water that is reasonably priced coupled with proper sanitation would be required for enhancing competitiveness of the local industry/businesses in the export market. Therefore, these utilities are urged to improve their cost-competitiveness and modernize their staffing, systems and procedures particularly in design, execution and operation of various projects.

7. Good health, strong labour force, quality education, etc., are to a great extent linked to easy availability of clean drinking water at reasonable prices. Therefore, the shortage of drinking water should be tackled at national level. Different water authorities might consider adopting a proactive approach in these matters and approach the provincial and federal government for taking appropriate measures for ensuring adequate quantity of clean water for drinking in the coming years.

Through collective research and development it is possible to adapt the technologies to our conditions and also to fabricate major parts of these desalination plants/treatment plants locally. The country stands a better chance of tackling the drinking water issues through a coordinated, fair and transparent approach among all the stakeholders.