ISLAMABAD: The Capital Development Authority (CDA) on Tuesday opened financial bids for awarding the contract of sewage treatment plants (STPs) project aimed at stopping the flow of untreated sewage into Rawal Dam.

The project, which involves the construction of three sewage treatment plants to treat wastewater flowing into the Korang River and other streams, was proposed several years ago. However, only limited funds were allocated every year, and the project has yet to be formally launched.

According to budget documents, the total cost of the project is Rs6.07 billion, while the federal government has earmarked Rs449 million for the fiscal year 2026-27. The level of funding suggests that even if the project is launched in the current fiscal year, its completion will take considerable time.

Sources in the CDA said initially the civic agency was likely to start work on one treatment plant in Banigala. Sources said that 64pc funds will be provided by the federal government and 36pc by the Punjab government.

Federal govt earmarks only Rs449m in budget for Rs6.07bn project

According to the sources, the lowest bid for STP I was Rs2.9 billion submitted by a Joint Venture of Kashmir Pre-Engineered construction (KAPEC) and Matracon, while as an alternative (option 2) the lowest bid was submitted by a firm namely Lingzhi Astral. If the CDA goes for option I, the JV of KAPEC and Matracon will be awarded work. In case of option 2, the work will be awarded to Lingzhi Astral for submitting the lowest bid of Rs2.8 billion (2833.761 million).

“We will examine option two bids before taking a decision,” said an official.

Two other JVs (ZKB-Beihang and Elite Engineering Orient) were also in the race but their bid rates were higher. Meanwhile, for STP 2, KAPEC and Matracon are the lowest bidders with Rs2.1 billion (2150.149 million) and Lingzhi Astral with Rs1674.656 million for option 2.

For STP 3, which will be set up in Banigala on Korang Nullah and which the CDA wants to start on priority, once again KAPEC- Matracon submitted the lowest of Rs3.2 billion.

Under the plan, the CDA will install three STPs in the catchment area to prevent contaminated water from entering Rawal Dam.

The plants are planned for Lower Shahdara, Bari Imam and near Banigala. In the absence of these

facilities, untreated sewage from unplanned settlements in the catchment area continues to flow into the reservoir.

Published in Dawn, September 30th, 2026