ISLAMIC REPUBLIC OF PAKISTAN WATER AND SANITATION AGENCY FAISALABAD (WASA-F) ISLAMIC REPUBLIC OF PAKISTAN THE PROJECT FOR WATER SUPPLY, SEWERAGE AND DRAINAGE MASTER PLAN OF FAISALABAD FINAL REPORT VOLUME II MAIN REPORT FEBRUARY 2019 JAPAN INTERNATIONAL COOPERATION AGENCY （JICA） NIHON SUIDO CONSULTANTS CO., LTD. JAPAN TECHNO CO., LTD. YOKOHAMA WATER CO., LTD. Foreign Exchange Rate: Master Plan US$ 1 = JPY 111.29 US$ 1 = PKR 104.85 (As of December 2017) FINAL REPORT ON THE PROJECT FOR WATER SUPPLY, SEWERAGE AND DRAINAGE MASTER PLAN OF FAISALABAD GENERAL TABLE OF CONTENTS [VOLUME I] EXECUTIVE SUMMARY [VOLUME II] MAIN REPORT PART A GENERAL STATEMENTS ON THE WATER SECTOR PART B WATER SUPPLY PART C SEWERAGE AND DRAINAGE [VOLUME III] SUPPORTING REPORT PART A GENERAL STATEMENTS ON THE WATER SECTOR PART B WATER SUPPLY PART C SEWERAGE AND DRAINAGE [VOLUME IV] DATA BOOK [VOLUME V] PRELIMINARY DESIGN FOR PRIORITY PROJECT (In addition to the above reports, a Completion Report summarizing the results, outcomes, and recommendations obtained from the pilot activities of this Project will be prepared in May 2019 as a supplemental report.) [VOLUME V] IMPLEMENTATION OF PILOT ACTIVITIES VOLUME II MAIN REPORT TABLE OF CONTENTS Table of Contents .................................................................................................................................... i List of Tables ....................................................................................................................................... vii List of Figures ................................................................................................................................... xviii Abbreviations and Terminology ......................................................................................................... xxv Location Map of Project Area ............................................................................................................. xxx PART A GENERAL STATEMENTS ON THE WATER SECTOR CHAPTER A1 INTRODUCTION A1.1 Background .......................................................................................................... A1-1 A1.2 Objective of the Study ......................................................................................... A1-2 A1.3 Study Area ........................................................................................................... A1-2 A1.4 Scope of Work ..................................................................................................... A1-4 A1.5 Pilot Activity ........................................................................................................ A1-5 A1.6 Current WASA-F Facilities ................................................................................. A1-6 CHAPTER A2 DESCRIPTION OF THE STUDY AREA A2.1 Administrative System of Faisalabad .................................................................. A2-1 A2.2 Natural Conditions ............................................................................................... A2-7 A2.3 Socioeconomic Conditions ................................................................................ A2-17 CHAPTER A3 LAWS, REGULATIONS, AND POLICIES A3.1 Laws and Regulations on Groundwater ............................................................... A3-1 A3.2 Laws and Regulations on Surface Water ............................................................. A3-4 A3.3 Laws and Regulations on Water Supply .............................................................. A3-5 A3.4 Laws and Regulations on Sewerage and Drainage .............................................. A3-6 A3.5 Laws and Regulations on Environmental and Social Considerations ................. A3-7 A3.6 Water Quality Standards .................................................................................... A3-11 A3.7 Policies on Water Supply and Sewerage ........................................................... A3-14 A3.8 Policies on Environmental and Social Considerations ........................................ A3-16 CHAPTER A4 DEVELOPMENT PLANS AND PROJECTS OF WASA-F A4.1 Plans and Projects Supported by the Asian Development Bank (ADB) ............. A4-1 A4.2 Plans and Projects Supported by the World Bank (WB) ..................................... A4-5 A4.3 Plans and Projects Supported by the French Development Agency (AFD) ........ A4-7 A4.4 Plans and Projects Supported by the Japan International Cooperation Agency (JICA) ................................................................................................................ A4-9 A4.5 Other Development Plans and PPP Projects ...................................................... A4-15 CHAPTER A5 INSTITUTIONAL FRAMEWORK AND ORGANIZATION A5.1 Institutional Arrangements for Water Supply and Sewerage, and Drainage Sector A5-1 A5.2 WASA-F Organization ........................................................................................ A5-3 A5.3 Other Relevant Agencies ..................................................................................... A5-7 CHAPTER A6 CURRENT WASA-F OPERATION AND MANAGEMENT A6.1 Current WASA-F Operations .............................................................................. A6-1 A6.2 Current Tariffs for Water Supply and Sewerage Services ................................. A6-22 A6.3 Customer Satisfaction ........................................................................................ A6-32 i A6.4 Willingness to Pay and Affordability for Water Supply and Sewerage Tariff .. A6-35 CHAPTER A7 ANALYSIS OF WASA-F FINANCIAL PERFORMANCE A7.1 Objective and Analytical Framework for the Current Study ............................... A7-1 A7.2 Accounting Analysis: Baseline Features of WASA-F Financial Management System ................................................................................................................ A7-1 A7.3 Analytical Results: WASA-F Financial Performance ........................................... A7-4 A7.4 Policy and Operational Considerations ............................................................... A7-14 A7.5 Financing Capacity of WASA-F for Envisaged Investment Program and Projects .......................................................................................................... A7-17 CHAPTER A8 FINDINGS AND ISSUES IN THE WATER SECTOR A8.1 Capacity Assessment of WASA-F ....................................................................... A8-1 A8.2 Factor Analysis ...................................................................................................... A8-5 A8.3 Issues and Directions of Planning .......................................................................... A8-7 CHAPTER A9 WASA-F OPERATION AND MANAGEMNET IMPROVEMENT PLAN A9.1 Approaches .......................................................................................................... A9-1 A9.2 Basic Policies ....................................................................................................... A9-2 A9.3 Methodologies ..................................................................................................... A9-3 CHAPTER A10 CONCLUSION AND RECOMMENDATION A10.1 Conclusion ........................................................................................................... A10-1 A10.2 Recommendation ............................................................................................... A10-2 ii PART B WATER SUPPLY CHAPTER B1 INTRODUCTION B1.1 Objective of M/P Formulation in Water Supply Sector ....................................... B1-1 B1.2 Approach and Policies .......................................................................................... B1-2 CHAPTER B2 WATER SOURCES B2.1 Groundwater ......................................................................................................... B2-1 B2.2 Surface Water ..................................................................................................... B2-16 CHAPTER B3 EXISTING WATER SUPPLY SYSTEM B3.1 General .................................................................................................................... B3-1 B3.2 Existing Water Supply Facilities of WASA-F ...................................................... B3-6 B3.3 O&M of the Existing Water Supply Facilities .................................................... B3-23 B3.4 Power Availability .............................................................................................. B3-46 B3.5 Non-Revenue Water Amount ............................................................................. B3-47 B3.6 Existing Water Supply Facilities Outside of WASA-F Service Area ................... B3-48 CHAPTER B4 FINDINGS AND ISSUES IN WATER SUPPLY SECTOR B4.1 Summary of Findings and Issues in Water Supply Sector .................................... B4-1 B4.2 Directions of Planning in the Water Supply Sector .............................................. B4-3 CHAPTER B5 WATER SUPPLY PLANNING AND DESIGN BASIS B5.1 Target Year for Planning ...................................................................................... B5-1 B5.2 Water Supply Planning Areas ............................................................................... B5-1 B5.3 Water Supply Planning for the Core Area .............................................................. B5-3 B5.4 Water Supply Planning for Satellite Towns ....................................................... B5-38 CHAPTER B6 WATER SUPPLY SYSTEM LONG-TERM PLAN (UPTO