KARACHI, Oct 9: The city district government and Karachi Water and Sewerage Board have signed a letter of Intent (LoI) based on the BOT basis for the reuse of treated effluent generated at KWSB plant No. 1.

A statement on Wednesday said that the bid submitted on the basis of a tender by VA Tech Wabag has been found responsive as compared to the other bidders in its technical and financial viability for treatment plant No. 1. It is subject to approval by the Sindh government.

According to the terms and conditions of the agreement, the city government will provide sewage treatment plant No. 1, known as TP-I, to Va Tech Wabag for use in the said project.

The city government will also provide 11 acres of land for running the said project on licence. In return, Va Tech Wabag will provide treated water to SITE Limited and SITE Association at the rate of Rs82 per thousand gallons.

If the contract is finalized and signed prior to December 31, 2002, the price will reduce to Rs81 per thousand gallons.

The LOI was signed by City Nazim Naimatullah Khan and Managing Director of Va Tech Wabag Sa (Pty) Limited, Dave Sevitz.

Arshad A. Vohra, Chairman of SITE Association, and Shahzado Shaikh, Additional Secretary (Development), government of Sindh, signed as witnesses.

Talking to reporters, Naimatullah Khan said that this is part of the efforts aimed at attracting foreign investment in Karachi, and this will give a boost to the economic activities in the city.

The Nazim said that this project would be beneficial in many ways, and the SITE Association would get a sufficient quantity of water.

He stated that this will also help ease the environment problem in the metropolis, besides job opportunities would also be created for the youth.

Naimatullah said that the city government would also generate millions of rupees in revenue as a result of this project, whereas it will have to invest nothing.

He pointed out that in 13 months time, the city government has signed more than 16 memoranda of understanding, and is now signing agreements on these, adding that work on the projects would commence soon.—APP