May 26, 2008	Monday	Jamadi-ul-Awwal 20, 1429

KARACHI, May 25: The already delayed project of a door-to-door collection of city’s solid waste has suffered yet another setback as the Chinese firm, which had signed an agreement with the city government, has expressed its reservations over investing $230 million in view of the country’s fragile political and law and order situation.

Sources told Dawn that the overall political situation and the steps taken by the provincial government for the control of the water utility and the KBCA had compelled the Chinese firm to review its decision of investing in the project.

They said that the Chinese feared that their investment was unsafe as the provincial government might also take over the department of solid waste. Besides, they also withheld their investment plan keeping in view the overall national situation.

Sources said that a Chinese delegation called on the city nazim on May 24 and apprised him of their concerns. The nazim, however, assured them that nothing of this sort would happen and asked them to start their work to honour the agreement signed on January 11 to which the Chinese company sought some more time and agreed to start work on the project in August.

The project has been delayed for the second time as earlier the Chinese firm, Shanghai Shen Gong Environmental Protection Company Limited, was supposed to initiate its operation on April 1.

However, the company changed its mind and announced that it would launch its operation in six towns on June 1.

EDO Municipal Services Masood Alam told Dawn that the Chinese firm would now start its operation, initially in six towns, from August 14. “The front-end collection of garbage and road sweeping will begin from August 14,” he added.

The six towns selected for the initial operation included Saddar, Jamshed, Gulshan-i-Iqbal, Liaquatabad, Gulberg and North Nazimabad.

According to the agreement, the Chinese firm is responsible for a door-to-door collection of solid waste in all residential and industrial areas of the city and its disposal on designated landfill sites. The CDGK will pay $20 per ton to the company for lifting and disposal of garbage. However, the city government would get 15 per cent of the total income to be generated by the company through recycling of the waste.

Sources said that the continuing depreciation of Pakistan rupee would also cause a financial loss to the CDGK as at the time of agreement one US dollar was equal to Rs60.