For WASA, it is either privatisation or bankruptcy

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Punjab Chief Minister Shahbaz Sharif’s fascination with changing government organisations into companies is in full swing and its next target is the Water and Sanitation Agency (WASA). Since the CM assumed office, four companies including Lahore Waste Management Company, Lahore Transport Company, Lahore Meat Company (now Punjab Agriculture and Meat Company) and Punjab Land Development Company have been established. A plan is afloat to transform WASA (subsidiary of Lahore Development Authority) into a company. The development unfolded when the CM held a meeting to review WASA’s performance some days back. Showing disappointment, he hinted at reorganisation of WASA, its reformation and induction of the best workforce in it. He said despite heavy expenditure, WASA’s performance was not satisfactory. “The CM gave two options that he wanted to turn WASA into a ‘company’ or ‘an authority’,” a senior WASA official told Pakistan Today, adding that the officials had opposed the move. “Any model can work that is not the point. Unless WASA is not allowed to increase its tariff no miracle can save it,” another official said. WASA DMD Naveed Ahmed said the plan to change WASA into company or authority was in the pipeline and the Planning and Development chairman had been asked to prepare a blueprint. After formal approval by the Punjab Cabinet, final plan would be implemented, he added.Per data available with Pakistan Today, the CM had made various efforts to outsource or privatise WASA in a bid to improve its operation in the past. However, due to reasons best known to CM, his dream could not come true. Another reason behind the move is learnt to be WASA’s inclination towards bankruptcy due to its budgetary deficit which has surged from Rs 3 billion to Rs 3.5 billion. Of Rs 3 billion, electricity bill deficit was Rs 2.5 billion. With the regular increase in petroleum and electricity prices, WASA’s annual bill has inflated to Rs 500 million. Sources in WASA said the Punjab government allowed the WASA to sell all its scrap with immediate effect to cope with its financial crisis. “The scrap money is like a drop in the ocean it won’t really help,” a WASA official said. “WASA is all set to be doomed since the government is not issuing any grants and it has also turned down the offer to increase water tariff,” an officer from the Financial Department said. Sources said WASA had paid heavy bills to LESCO and had also installed around 70 new tubewells and that had led to an increase in the deficit.