KARACHI, Dec 19: The Karachi City District Government has expressed certain reservations on the Sindh government’s plan of Private Sector Participation (PSP) in the Karachi Water & Sewerage Board aimed at improving water and sanitation services in the city.

If the Sindh government decides to adopt the PSP for the KWSB, it will need to adopt a phased approach in selecting a suitable option and implementing it because there are deep public reservations and negative perceptions about the role of the private sector in a service as basic as water, observed the city Nazim, Naimatullah Khan, at a recent meeting with a World Bank mission.

The mission visited Karachi to hold meetings with the Sindh government for funding its reforms programme.

The City Nazim in his observations, that were also part of the draft aide memoir of the IBRD mission discussed at a wrapup meeting on Nov 21, said the sole aim of the private sector in water supply was seen to be limited to transforming a public good into an economic good.

The Sindh Privatization Commission and the provincial government needed to pursue an active consultative approach, whereby the work done and options studied under an earlier IBRD-supported efforts could be laid out for public discussion, he said.

Moreover, restoring government’s credibility in seeking significant private sector participation in the KWSB be given high priority, the Nazim suggested and pointed out that potentially serious international bidders had incurred significant costs while preparing for the aborted KWSB transaction and they were unlikely to come back in a hurry.

The Nazim suggested that production (bulk supply of water) and distribution functions needed to be addressed separately. He also underlined some other actions which included getting the current court restraining order vacated; an unambiguous government policy on the private sector’s participation in the KWSB and clear public statements supporting this by highest ranking officials; empowering the Sindh Privatization Commission with a clear mandate; appropriate legislation; capacity and resources to follow through with the transaction.

As far as solid waste management is concerned, the IBRD mission was informed that the city government planned to review the findings of an ongoing strategic study on solid waste management for Karachi and recent regional and global implementation experience in attempts at private sector participation.

The IBRD was requested for advisory assistance to help initiate private sector-led solid waste management services in one or more towns of the City District Government over the next 12 months.

—PPI