Germany finalises €40 million grant for Faisalabad water supply project

FAISALABAD: A grant agreement worth €40 million has been finalised between Germany’s KfW Development Bank and the Water and Sanitation Agency (WASA) Faisalabad for a climate-resilient water supply scheme intended to improve infrastructure and service delivery in the city.

The agreement, backed by German cooperation, was highlighted during a ceremony at a local hotel. German Ambassador to Pakistan Ina Lepel attended as the chief guest, while Deputy Commissioner Capt (Retd) Nadeem Nasir was the guest of honour. Senior WASA officials were also present.

During the event, WASA Managing Director Saqib Raza briefed participants on foreign-funded projects that are under way or have already been completed. He said the newly finalised initiative would bring a major improvement in the city’s water supply system.

According to Raza, the project includes the rehabilitation of 25 tube wells under the inline system, the construction of one new water tank and six additional tanks, and the modernisation of Gulfishan Water Works through the installation of a rapid sand filter system with a capacity of three million gallons.

He added that the scheme also covers the reconstruction of overhead and underground water tanks, the laying of new distribution networks, the construction of 10 new tube wells along the Rakh Branch Canal, and the development of underground stormwater storage facilities.

Implementation and scope

The Housing, Urban Development and Public Health Engineering Department Punjab will serve as the sponsoring agency for the project, while WASA Faisalabad will be responsible for execution.

The project has been planned for three years and is aimed at strengthening the climate resilience of Faisalabad’s water supply system while expanding key drinking water infrastructure in the city and adjoining areas.

Speaking on the occasion, Deputy Commissioner Nadeem Nasir said a KfW appraisal mission had visited Faisalabad in October 2025 to review the scope of the project and its implementation arrangements. He said the proposal would be sent to Germany’s Federal Ministry for Economic Cooperation and Development (BMZ) for approval, adding that preparation of the PC-I was in progress.

German Ambassador Ina Lepel described the initiative as highly important for improving water supply and tackling climate-related challenges.

Focus on climate resilience

The project is designed to address both service delivery needs and climate pressures affecting urban water systems. The planned works include improvements to water storage, filtration, supply lines and tube well infrastructure, along with stormwater storage facilities intended to support the city’s broader water management capacity.

Officials at the ceremony said the scheme would contribute to expanding drinking water infrastructure in Faisalabad and nearby areas through grant funding arranged under German cooperation.

The agreement marks a new phase in cooperation between German development financing and local authorities in Faisalabad on water sector infrastructure.