As happens every summer, Karachiites are at the mercy of the administration which claims to have woes of its own.

This year a wave of panic spread amongst the personnel of the Karachi water management who were making preparations to convert the oncoming season into a 'profitable' one. With the political government in place, and the local government councilors in control of the valves, water riots in the city were thought to turn into greater profit margins for all the mafias.

Most of the 8,500 employees of the KWSB were waiting anxiously with itching palms for the sizzling days when the goose would start laying its golden eggs. But the situation in recent days has gone out of hand, with people taking to the streets.

The KWSB stands to spend a lavish amount of Rs. 957.10 million in salaries and benefits during the current fiscal. The amount has risen greatly from Rs.650 million of last year. However, mismanagement, out-of-turn promotions, advance increments, new appointments on a political basis and ghost employees are some of the elements that are likely to take the total expenditure to Rs. 2,873.711 million by the end of the fiscal. But not much of it would bring any relief to the water-starved people of Karachi.

The Karachi Water and Sewerage Board had witnessed protests over water shortages in the tail ending areas before summer began while the mercury was still at a tolerable level. The demonstrations were triggered by a tussle between the politicians and councilors, the latter had allegedly diverted the water flow towards areas where they had bagged a higher tally of votes.

In certain areas, the tanker mafia had financed artificial shortages to make hay as the temperatures soared.

The water crisis is also a result of the irregular supply of electricity to pumping stations. The obsolete equipment used by the KESC causes voltage fluctuation, the tripping of feeders and pole-mounted transformers badly affecting the supply to the city.

Karachiites have little hope of escape from the ranks of the water board even after changes in the administrative structure following elections under the devolution of power formula.

The management may have made efforts towards the implementation of the Sindh Local Government Ordinance 2001 in ensuring that no disruption is caused in the delivery of vital civic services but the provisions of the Ordinance has initiated a major political struggle over controls.

The Board is now functioning under the City Nazim with a managing director from the army and the deputy managing director from the civil services. And as these can never agree that leaves out any hope of cooperation and coordination in the Board's operations. The amended ordinance is scheduled to be discussed in the Sindh Assembly, but prospects of reaching a consensus for the conversion of the amendments into an Act appear remote amidst the usual rumpus that highlights the assembly proceedings.

Coming to the most important aspect of water management in the city - the supply lines - Karachi is getting a total of 420 MGD against a demand of 650 MGD. There was some respite when the Board received 100 MGD as additional supply after the completion of K-III prefect. But the advantage was squandered as a result of the dwindling collection of water at the Hub Dam because of less rains in catchments. The supply from the Hub Dam has now receached a precarious level- the supply is only of 17 MGD.

But, during the hot days, the focus is on the 420 MGD available to the Board for distribution. Officials refused to divulge how much water is being pumped into the hydrantsthat never run dry, for which one has to pay despite the fact that one has paid for it through taxes and has thus a right to it. The hydrants in the city have been taken over by the Pakistan Rangers. Thousands of private tankers have been hired to sell the water in those areas where the supplies are affected, through the nine hydrants located in different parts of the city. In a recent order the city government closed all private hydrants, licensed or unlicensed. Their fate now hangs in the balance dependent on the reports of the city councilors. Pakistan Rangers is set to take over control of all the private hydrants of the city. Whether the action provides any respite to the long water queues is another matter.

Those who can afford to stay away from the lines of the thirsty will have to pay. According to details available from thePakistan Rangers the cost for 1200 gallons is Rs. 275, for 2400 gallons Rs. 375 and for 3600 gallons Rs. 550. The Board is pocketing Rs. 150 against filling charges per tanker. In some areas private tankers have been given a free hand and the Rangers have no control over the price that is being charged by the private vehicles. The Rangers collect Rs. 73 per thousand gallons which is sold at any price, determined by weather conditions and dependent upon location. City dwellers believe that if the tanker system is abolished, there will be enough water for everyone but that is a remote possibility.

Taking advantage of the inefficiency and corruption in the KWSB, the National Logistic Cell has joined the fray. The NLC is another military organ which has taken advantage of the controversial distribution. They have a fleet of 80 vehicles and purchase water at Rs. 73 per thousand gallons. Their tankers are plying mostly to the industrial areas and the National Refinery. Details provided by NLC water management wing reveal that 150 personnel are deployed far the cell. Their vehicles make 250-260 trips per day, which will increase during the next two months. They paid over Rs. 14 million to the KWSB asdues, last year. NLC's filling station is located at Safoora Gosh. The NLC is selling water to domestic consumers at Rs. 278.50 per thousand gallons. The profit earned goes into salaries and the maintenance of vehicles.

The Board's engineering department fears a law and order situation during the sultry summer, The deficit of 230 MOD water supply predicts for a dreadful scenario.Things may not ease with the limited supplement provided by the private hydrants that extract subsoil salty water through tube wells. People are forced to pay a high price for this water. The real problem that diminishes supply areleakages and pilferage which increased to 35~0% during summer and remain unchecked. In most of the areas old pipelines have been eroded or damaged by looters. It's a hectic and expensive task to replace these pipelines and arrest the water thieves but the Board has to accept the responsibility as their employees are paid to work for the maintenance of the distribution system.

Water distribution through hydrants can only be justified if it is free of charge otherwise there is no justification for its sale particularly after the recent revision of taxes. The authorities expect a 10% surge in the collection of revenue as a result of the new tariff.

Shockingly councilors of the respective areas created confusion by creating the impression that after the devolution of power they had the power to collect the water and sewerage taxes within their constituency. The collection of revenues suffered a heavy setback until a proper notification was issued by the government recently. There is no clue as to the total amount that had been collected by the councilors and whether the collection went to coffers of the Board.

Not sprisingly, Rs. 2806.651 million remains outstanding as water and sewerage charges against the federal and provincial governments. And despite the matter being taken to the highest level, no department has made any effort to settle the dues. In the other areas, revenue collection suffered from the inefficiency and negligence of the staff. The Board management admitted that a large number of show cause notices had been issued to slumbering and corrupt employees but they expect no positive results because of the government's lop-sided secant rules which permit strict punitive action like the termination of services but only after a lengthy and cumbersome procedure seldom completed to achieve the purpose.

The list of defaulters are a shock to water consumers who pay their taxes regularly yet fail to see running water in their taps. According to details the number of defaulters who owe the Board over Rs. 100,000 is 2727. The outstanding dues against them is around Rs. 1.4136 billion. The total number of defaulters is around 600,000 and the total defaulted amount has risen to around Rs. 4 billion. The arrears on water charges continue to mount as out of a billing amount of Rs. 800 million only 500~00 million is recovered.

Officials of the Board remain unaware as there is no law in the organization to allow them torecover the outstanding dues. The police fail to register any case of stealing water or of 'tightening the valve to create an artificial shortage.' Councilors and politicians are immune from any form of punitive action for the diversion of the water supply to areas of their choice or for collecting taxes in violation of the provisions of the Ordinance.

The defaulters, on their part, complain that despite their pleas no water supply to their premises for months and years has been made available. They are forced to purchase water from other sources.

Obviously they are under no obligation to pay taxes for a thing which does not exist.

There is no way to authenticate the claims of the consumers.

The Board on its part has issued its latest list of defaulters. It is a heavy document, but those who have outstanding dues of over Rs. 2 million include:

Mian Saifullah (high rise): Rs. 2,581,770; Sindh Provincial Cooperative Bank: 2,147,654; Yousaf Ali & Sons Ltd. (commercial): 3,424,828; Amina Bai w/o Hali Adam (com): 6,495,990; M/s. Unique Ltd. (office): 5,510,398; National Bank of Pakistan(HR), 11,937,863; American Life Insurance Company(HR): 27,799,383; Premier Insurance Company(HR): 4,450,492; State Life Insurance Corporation(com): 61,745,989; M/s Ralli Brothers Ltd. (HR): 3,918,809; Mohammad Usman Hajra Bai Trust: 7,183,326; Karachi Club: 21,51,402; Hotel Plaza International: 3,481,553; Mrs. Zarina Butt(com): 2,048,744; Karim Center(com): 2,699,632; S.M. Mehboob Bux & others(com): 2,884,862; Sirajuddin Paracha(com): 2,038,285; Shariq Akhtar(com): 2,309,780; Press Associated Ltd.(com): 2.124,519; Ali Husssain Akhtar Ali(com): 2,585,082; Medicare (pvt) Ltd. (hospital) : 2,647,003; H.R. Sons(com): 5,473,386; Glamour One(HR): 4,360,298; Sh. Sher Ali(com): 2,501,512; New York Polyclinic (hosp): 2,591,736; Global Marketing(com): 4,364,298; Islamic Culture & Research: 5,915,592; U.B.L. Sports Complex: 41,651,564; Customs Sports Complex: 33,657,957; Hali Bashir & others(com); 2,698,111; Kenhill Ltd.(com): 5,443,372; M/s Siza Services(com}; 18,917,893; Mohammad usman Jokhio(office): 2,174,252; Pak Maniar Investment(off): 2,383,949; Ejazurehman(off): 4,602,301; Mrs. Razia Begum(com): 2,608,928; M/s. Tawakal(pvt) Ltd.(com): 4,136,929; M/s Mian Sian Pervez Akhtar(com): 3,908,733; M/s National Industrial Management(com): 2,028,130; M/s Pioneer Cement Ltd.(com): 6,120,037; M/s Pangario Sugar Mills(com): 4,192,249; M/s Gulistan Textiles(com): 6,256,715; Safayer Agency (pvt) Ltd.(com): 3,621,694; M/s Nadeem Enterprises(com): 3,380,669; Mrs. Gulshan Ara(com): 4,125,461; Mohammed Haroon(mamage hall): 2,009,869.

There are three possible approaches to face problems relating to environmental issues in Pakistan: (1) totally ignore them; (2) delay the progress and economic growth in the name of environment and, (3) save its eco-system, including its wild life , fauna and flora, ground water and surface water, and air.

Unfortunately, there is a tendency to focus on environment as the only issue, ignoring all other aspects. It is for the decision-makers to take a balanced view between the environmental concerns and the economic issues and arrive at a right conclusion.

Two case studies are presented to illustrate the point: the Left Bank Outfall Drain (LBOD) and the present Right Bank Outfall Drain (RBOD), now under design and construction.

LBOD: A Rs780 million tidal link was proposed by a foreign consultant to save the coastal belt near Badin (mostly salt plains with no agriculture) from the out falling saline drainage water from LBOD. This area is very close to sea and has few dhands (shallow lakes) with partly fresh and partly saline water. The main thrust of the argument for building the tidal link was to save these dhands from saline water and save the incoming Siberian birds, which settle down on dhands in winter.

One can appreciate the concern of an environmentalist of the dhands water levels. However, if one looks at it keeping in view economic scenario, the whole project built with a loan with high interest rate from the World Bank, it would appear to be an environmental extravagance and unaffordable luxury for a very poor Pakistan.

Unfortunately, it seems that no Pakistani is powerful enough or qualified enough to question its wisdom and anyone who raised any question was ridiculed by their own countrymen for ignoring such an "environmental treasure of Pakistan". It was even beyond the powers of Wapda, or the Irrigation Department (Sindh) to question the wisdom of the donor agencies since the paymaster was the World Bank and its associates and the consultants were from Europe.

However, the whole wisdom behind the project came crashing down when within three years, first the main Chorli wear on the tidal link crashed to the channel bottom (1998) and soon after the tidal link was washed away. Now, there is no tidal link except for few broken, discontinued banks and the saline drainage water seen spreading all over. Thank God, the Sindh government rejected World Bank offer to rebuild the link, of course with a fresh loan. The world has seen that the tidal link was not an unavoidable environmental necessity worth Rs780 million, because the Siberian birds are still coming and the dhand waters' marine life continues to exist with slight changes.

Amri archaeological site: We now come to a problem, a sensible decision which would save the country an amount of Rs300 million and a potential risk to the safety of Right Bank Outfall Drain (RBOD) now under construction on the right bank of Indus.

It is feared that a decision based not on ground realities in the name of environment and for saving questionable archaeological site would not only raise the cost of the project but put it under the threat of River Indus. It should be noted that RBOD itself is a grand environmental project to save millions of acres of the right bank land from water logging, Manchar Lake from salinization and finally save River Indus from pollution likely to be caused due to discharge of saline drainage water, down stream of Sehwan.

RBOD at village Amri passes through a space which exists in between two archaeological sites which are in shape of earthen mounds. These mounds are supposed to be the ruins of an habitat dating back to Indus civilization. However, it is still not established, and any work done in the past was in 1960 and since then lot of encroachment has taken place and one can see village clinics and other buildings around. The space between mounds is being cultivated since years.

There are three alternatives available for the RBOD route around Amri. The first is to pass the drain in-between the two mounds which are 380 ft apart. The surface width of the drain is 150 ft leaving a distance 115 ft from the edge of the drain to each mound. The total digging involved is to a depth of 15 ft from the surface. For this alternative, a measure to save the mounds, A and B- the likely archaeological site-, it has been proposed to hand dig this reach of the channel 1000 ft under the guidance of the Archaeological Department. If any thing worth was found, it would be handed over to the museum and the digging stopped. The there will the alternative 2 or 3 left. Further, the channel would be lined to protect the site from any potential seepage.

The second alternative would be to totally by-pass the site and take RBOD on the left side. This would take RBOD into the flood plain of River Indus and very close to the main channel. It would be under constant attack from the river in floods. This would also result in cutting through the agricultural lands of farmers with small land holdings and would result in their dislocation.For this option, special structures would be required to protect the RBOD from floods and provide a large number of foot bridges, for affected lands costing Rs300 million. Further a large sum would have to be added in resettlement cost on this amount.

The third alternative is to take it on the right of Amri, which would cause dislocation of the railway line and national highway and would cost Rs350 million, more than the first alternative, plus dislocation of farmers and cutting through their agricultural lands.

The clients on insistence of archaeological department are considering alternative 2, while the alternative one should be accepted on the following grounds:

i) Would the cost less by Rs 30 to 40 crores?.

ii) The risk involved to the archaeological site is not of the level of the range of Rs30 crores.

iii) No risk is involved to the safety of RBOD in alternative 1 and therefore is the safest route, as compared to route 2.

iv) compromise between environmental and economical considerations based on the principles discussed above, the best choice for Pakistan would be alternative 1.

v) The damage being done to the living human beings by cutting through their lands and displacing them in alternative 2 and 3 is of greater significance than a possible damage with questionable chance of any risk to the dead, non- living archaeological site which after all is neither a Taj Mahal nor a Mohinjodaro.

vi) Should a poor country like Pakistan ape the affluent west and walk in their foot steps in matters of environmental policies. Surely not, we have to adopt and adapt to our own economic conditions and ground realities.

(D-Eco & Bus, 14/07/03)

ISLAMABAD, April 27: The federal government is preparing a Rs200 billion 'contingency plan' outside the normal budgetary funding to kick-start a couple of mega water projects over the next five years.

A senior government official told Dawn that the concept of preparing a contingency plan had emerged after recent debates and exercises on issues of large dams, like Kalabagh and Bhasha, and other irrigation projects.

The plan would be kept sufficiently flexible so that it could respond to more favourable funding circumstances. The objective is to increase funding to the water sector beyond the targeted 0.5 per cent of the GDP to be outside of the Public Sector Development Programme (PSDP), but not off-budget.

Official estimates suggest that the water sector investment programmes, which are already part of a medium-term investment plan, a 10-year perspective plan and Wapda's 'Vision 2025', would require up to Rs600 billion.

The decision to commit a major chunk of funding to the water sector, in addition to the normal PSDP, would still be made within the broader budget and fiscal framework established by the finance ministry.

Given the cost of mega-projects, these projects may be considered outside of PSDP until their full funding is committed. By holding them separate, the government does not require to squeeze out good, high-priority projects in the overall system while waiting to see if financing for these projects materializes.

The government is faced with a situation, said the official, where there was still no provision for scaling up investment in inter-provincial drainage infrastructure to control waterlogging and salinity, through canal modernization, if carried out as an integrated system.

The World Bank estimates that 72 per cent of the incremental expenditure over the period 2005-07 projected by the ministry of water and power is allocated to projects started in fiscal 2003 and 2004, but the throw-forward is only reduced by 38 per cent, leaving a commitment of about Rs214 billion for the next five years.

(Daily Dawn 28/4/04)

Political control and corruption are two key factors responsible

for degradation of water resources management in Pakistan

By Mustafa Talpur

Economists have suggested water markets as a remedy, but the absence of well-defined property rights and high transaction costs remains a barrier to this solution. Efficient market function requires perfect information for all, perfect competition, fewer externalities and well-defined rights. In the absence of these conditions, markets do not work properly and become monopolised. In this case, they pose serious negative consequences for the poor segment of society. Table shown presents the key arguments for water as economic good or social good.

Human rights organisations, non-governmental organisations and even United Nations organisations like Unicef consider water a basic human right. Every one has a right to water without social, economic, gender or political discrimination. The argument made that if a market value is attached to water, several million people will not be able to even get drinking water. The small farmers at tail ends of irrigation systems will not get sufficient water, which is now guaranteed by law, thus compelling them to hydrological poverty.

The issue suggests that water is a scarce resource and should be treated accordingly. All the suggestions for market valuation have an agenda to increase water use efficiency and increase revenue to meet operation and maintenance costs. In the following portion, we will examine the role of different institutions in achieving the objectives of cost recovery, rationalising prices and enhancing water use efficiency.

Do institutions matter?

Most irrigation systems throughout the world were developed by governments and are managed by huge centralised government bureaucracies. The failure of centralised institutional arrangement led to financial crisis. Institutional components of irrigation broadly comprised on water rights, policy and administration. How well the water rights are defined in a country will reflect the degree of decentralisation in water regulation and the appropriateness of water markets to price irrigation water. Water laws are another important element of institutions governing the water sector. Unclear definition, obsolete and uncertainties in water laws are limiting the sustainability and efficiency of irrigation water system management. Countries like Pakistan where colonial rules are still exercised and historical customary rights of communities over resources are denied, gives the very basis to inequality and management crisis, which tilts benefits to powerful groups.

The law determines the efficient disposition of water disputes, water allocation at different points and compliance with legal procedures. A well-defined and well-drafted legal system is a key tool for efficient management. It is incumbent that law should incorporate the customary and historical rights of water use of communities and, to a larger extent, empower local communities for management and control over the resources. In the entire developing world as well as in Pakistan, water governance is controlled by centralised gigantic public sector organisations, and operates under colonial rule.

These institutions are politically governed and possess inherent inclination to the country's power structure. Historically, the powerful rural elites have a strong voice in government. During last 30-40 years, this unholy pact of feudalism and bureaucracy brought the entire water management system on the verge of collapse. The fundamental problems emerging under this elite and bureaucracy-managed water is inequity in distribution at all levels of hydraulic systems. If on one side post-Tarbela period increased water availability, on the other side it increased distributional inequity thus neutralising poverty reduction objectives. The wealth generated by extra available water unequally distributed first to the people of upper riparian and then few landlords of lower reach of the Indus River.

Although the scarcity value of water is increasing, the politically rooted system of public provision and subsidised water charges insulates the water economy from influence of actual market forces. The poor recovery rates undermining the efficient maintenance of existing water infrastructure as well as additional investment in future water. But corruption and hidden water economy has to be incorporated before making suck kind of judgment on recovery. Though the measurement and validity of bribe amount is difficult, but the continuous experience at one place revealed to the author that farmers at each watercourse were paying average annually Rs25,000-30,000. Small channel having 30 watercourses has illegal business of about Rs1m annually.

Political control and corruption are two key factors responsible for degradation of water resources management in Pakistan. Pakistan, under the prescription of the World Bank, is implementing water sector reforms to introduce model developed in Mexico and other countries. The entire reforms agenda is driven by the factor mentioned above. The initial idea of the Bank was to privatise the system, but wider public opposition to the idea changed, yet it might be leading towards the same idea. There are few risks to implement water sector reforms under the agenda of the World Bank. Being driven solely by the ideology of market economy, the Bank might be trying to suggest increasing user fees and charges and slowly moving toward economic pricing of water thus leading to exclude poor farmers in the name of poverty reduction as being done in structural adjustment programme and now in poverty reduction strategy papers.

The second risk is already surfacing now in half-decade implementation of reform agenda that is control of the same powerful group on new institutions. This validates the idea that water reforms and empowerment of poor farmers is linked to land reforms, other