PESHAWAR, March 15: The Khyber Pakhtunkhwa government has planned to solve water, sanitation and cleanliness problems in the provincial capital along the lines of the one in Punjab."We have decided to create a company on the pattern of Water and Sanitation Agency in Punjab province to address all issues relating to water and sanitation, drainage and cleanliness faced by Peshawar's town municipal administration," senior minister Bashir Bilour told a news conference here on Thursday.

The minister said an initial grant of Rs9 billion would be extended by donors to run the proposed company on experimental basis for a year.

He said he expected that the company would be operational from July 1, 2012, to overcome all longstanding water, sanitation and cleanliness problems.

Mr Bilour said urban areas in the province faced enormous issues relating water, cleanliness, sanitation and drainage due to poor management system, while the growing urban population, influx of internally displaced persons to settled areas and hosting of Afghan refugees was aggravating the situation.

He said after creation of the company, more than 3,700 employees of Peshawar's four municipal towns would be devolved on deputation basis to manage it.

The minister said unfortunately, these employees hadn't been paid salary for the last several months due to financial problems of the towns. He, however, said things would improve once the company was in place.

"The employees will be provided with uniform and latest equipment for doing assigned tasks. They will get 20 per cent additional deputation allowance in basic pay along with existing allowance, benefits and other facilities. Their all allowances, pension and gratuity will continue," he said.

Mr Bilour said the proposed company would run under a managing director and director with additional staff of more than 100 water and sanitation and drainage experts.

He said no additional taxes would be imposed by the company for meeting expenditure and rather, existing resources would be used for the purpose.

"We are trying to get funding without delay for establishing company," he said, adding that efforts would continue addressing all issues confronting people in urban areas of the province.

The minister said the government would try to provide all facilities to employees already working in current positions in municipal towns. He said the company's priority would be to improve water and sanitation, and drainage system in Peshawar's four towns, cantonment and Hayatabad areas.

Mr Bilour said pathetic condition of water supply and drainage systems in the city had led to the need for creation of the company for early addresal of the issues.

He said some important steps would soon be taken in a meeting to be presided over by chief minister Ameer Haider Khan Hoti to bring Peshawar on a par with developed cities of other countries.

The minister said for garbage disposal in Peshawar's city and cantonment areas, an agreement had been signed with a company, which had already begun work on a garbage treatment plant at the cost of Rs10 million.