Karachi October 7 2022: Crescent Steel and Allied Products Limited has received a Letter of Intent (L0I) from China Harbour Engineering Company Limited (CHEC) for pipe coating (Bare pipes will be provided by the client) having diameters of 68 and 84 inches for the K-IV project, the Greater Karachi Bulk Water Supply Scheme which is in addition to the previous quantity of manufacturing and coating of pipes.
The value of the contract is expected to be around PKR 3,270 Million. Subject to the execution of contract, the manufacturing is expected to commence in the second half of the current financial year and will be completed, hopefully, by the end of financial year 2024.
Sindh government had approved the K-IV project in the year 2015. The plan presented by the Sindh government to the federal government on the matter acknowledged a daily supply of 650 million gallons of water, which was to be completed in three phases by the year 2023.
The project’s Phase I consisted of 260 MGD, Phase II comprised 260 MGD and Phase III promised 130 MGD. The Sindh government started work on Phase I 260 MGD in 2016 which was to be completed in 2018. The original cost was Rs25 billion which the federal government and the Sindh government had to pay on an equal basis. However, due to the incompetence of officials, rampant corruption, and flawed project design by the Sindh government, the construction cost of the K-IV project increased manifold from the initial estimation, rendering the project to come to a halt.
Phase-I of K-IV Project to be constructed to be in district Thatta, Malir and Karachi West, with approved PC-I of Rs.126.5 billion, envisages to supply 260 MGD of water to Karachi. The Project will be constructed through eight packages; of which two have already been awarded, three being awarded today while remaining three will also be awarded in the next ten days.
Two contractors have been mobilized to the site and construction of the Project will commence in first week of July. The phase-I of K-IV is scheduled to be completed in October 2023.
Crescent Steel and Allied Products Limited was incorporated on 1 August 1983 as a public limited company in Pakistan under the Companies Act, 1913 (now Companies Act, 2017). The Company operates five segments Steel, Cotton, Investment and Infrastructure Development (IID), Energy and Hadeed (Billet) segment.
