KARACHI, PAKISTAN - (January 23, 2003) Earlier today, the U.S. Trade and Development Agency (USTDA) signed a $287,480 grant agreement with the Karachi Port Trust (KPT) of Pakistan to partially fund a feasibility study for a proposed 25 million gallons per day (MGD) desalination plant in Karachi. In a ceremony at the KPT headquarters in Karachi, U.S. Ambassador to Pakistan Nancy Powell signed the grant agreement on behalf of USTDA and KPT Chairman Vice Admiral Ahmad Hayat signed on behalf of the grantee. 

Most of Pakistan's urban water supply and sewerage works were installed or last upgraded more than 25 years ago, are operating above design capacity or have reached the end of the serviceable system life. This situation has left the country facing a critical shortage of potable water supply. Karachi, a port city with a population of about 12 million, and growing at 5 percent per year, faces severe water shortages with no confirmed or identified new sources of water to meet the present deficit of over 150 MGD. 

As a result of limited availability of domestic financing, the Government of Pakistan is promoting private sector participation in its water sector by inviting proposals on a build-own-operate-transfer (BOOT) basis. KPT has allocated a 100-acre parcel of land for construction of a 25 MGD desalination plant. California Enviro-Management, Inc., a U.S. small company project developer, has received a letter of intent from KPT to proceed with the project and has teamed with Burns and McDonnell, a Missouri-based firm, to provide engineering services and to act as overall project manager. 

The USTDA-funded feasibility study will assess the technical, economic and financial feasibility of the construction of a desalination plant to supply potable water to KPT and the Karachi Water and Sanitation Department for industrial and domestic use. If implemented, this public-private partnership would be the first desalination plant of this scale in Pakistan. 

The U.S. Trade and Development Agency advances economic development and U.S. commercial interests in developing and middle-income countries. The agency funds various forms of technical assistance, feasibility studies, training, orientation visits and business workshops that support the development of a modern infrastructure and a fair and open trading environment. USTDA's strategic use of foreign assistance funds to support sound investment policy and decision-making in host countries creates an enabling environment for trade, investment and sustainable economic development. In carrying out its mission, USTDA gives emphasis to economic sectors that may benefit from U.S. exports of goods and services. 

Link: http://www.ustda.gov/trade/press/Jan23_03.html