The Sindh cabinet on Thursday approved a 40 per cent increase in the cost of a dedicated water line to supply the Defense Housing Authority (DHA) from Dumlottee on the outskirts of Karachi.
The cabinet revised the engineering, procurement and construction cost of the Frontier Works Organization-led project from Rs10.56 billion to Rs14.237 billion.
Senior Minister Sharjeel Inam Memon said the increase reflected changes in engineering design, pipeline material, taxes, inflation, filtration facilities, monitoring systems and other project requirements.
The cabinet also approved the appointment of a consultant under the relevant procurement law and endorsed an increase in the bulk water tariff from Rs0.60 to Rs0.70 per gallon to support long-term financial sustainability.
Officials said the revised financial model would generate net savings of about Rs2.31 billion over the next 10 years.
The cabinet also gave in-principle approval for a modern logistics park or truck terminal on Karachi’s Northern Bypass to reduce congestion and improve freight movement.
The proposed facility will include truck parking, warehouses, container yards, fuel stations, repair workshops and driver facilities.
The government plans to develop the project through private sector investment on at least 400 acres of land.
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