ISLAMABAD: The long-delayed project for the construction of sewage treatment plants (STPs) in the Rawal Dam catchment area has once again received only a nominal allocation in the federal budget for fiscal year 2026-27, indicating that the project is unlikely to be completed within the upcoming financial year.

The project, which involves the construction of three sewage treatment plants to treat wastewater flowing into the Korang River and other streams, was proposed several years ago. However, every year only limited funds are allocated, and the project has yet to be formally initiated.

According to budget documents, the total cost of the project is Rs 6.07 billion, while the federal government has earmarked Rs449 million for the fiscal year 2026-27. This level of funding suggests that even if the project is launched in the upcoming fiscal year, its completion will take considerable time.

Under the plan, the Capital Development Authority (CDA) is to install three STPs in the catchment area to prevent contaminated water from entering Rawal Dam. The plants are planned for Lower Shahdara, Bari Imam, and near Banigala. In the absence of these facilities, untreated sewage from unplanned settlements in the catchment area continues to flow into the reservoir.

In recent years, the CDA has reportedly invited bids for the project on a few occasions but later scrapped the process.

Meanwhile, for the upcoming fiscal year, the federal government has also earmarked Rs2 billion for the Margalla Avenue link road to Motorway-I.

The construction of the 2.7-kilometre portion of Margalla Avenue to connect it with the Peshawar Motorway (M-I) was initiated in March this year. The CDA is executing the project using its own funds. In February, the civic agency opened financial bids, with the lowest bid coming in 10 per cent below the estimated cost, after which the work was awarded.

However, according to budget documents, the federal government has allocated Rs2 billion for this ongoing project.

CDA officials, speaking on condition of anonymity, said the project is being executed through the authority’s own resources, but the allocated amount may be used for land acquisition, which is still pending, while construction continues on land already acquired by the CDA.

Published in Dawn, June 13th, 2026