By Ijaz Kakakhel
Construction has begun on Faisalabad’s Eastern Wastewater Treatment Plant (33MGD), with detailed design work about 80% complete and sedimentation tanks under development, according to official documents available with Wealth Pakistan.
The Rs56.04 billion project, being developed at Chak No. 244 RB, aims to increase the city’s wastewater treatment capacity and improve the management of sewage generated in the eastern areas.
The city generates approximately 250-300 MGDs of wastewater. Under Phase I of the project, wastewater flowing through Channel No. 4 in the eastern part of the city will be treated through trickling filter technology, adding 33 MGD of treatment capacity to the city’s sanitation system.
The local component of the total project cost is Rs2.816 billion, while the foreign component stands at Rs53.221 billion, equivalent to around €178 million.
Danida Sustainable Infrastructure Finance (DSIF), Denmark sponsors the project (tied loan+42% grant) along with the Punjab government. The interest payments will be covered by DSIF through grant-in-aid arrangement.
The Government of Pakistan, Danida Sustainable Infrastructure Finance and Danske Bank, Denmark signed the loan agreement on September 12, 2025. The project status document puts the agreement value at €183.6 million.
The scheme includes the construction of a wastewater treatment plant, rehabilitation of Channel No. 4, and development of a trunk sewer from the terminal point of the channel to the treatment facility. A force main will also be installed to discharge treated water into the Gogera Branch Canal.
Significantly, the treatment facility will generate nearly three megawatts of electricity through biogas to meet the plant’s requirements, reducing its dependence on external power supplies.
The project is being executed under a Design, Build and Operate model, comprising three years of construction followed by three years of operation and maintenance. The project timeline is November 2025 to October 2028, while the operation and maintenance phase will run from November 2028 to October 2031.
Official documents show that the Environmental Protection Department has already issued a no-objection certificate, while a dedicated Project Management Unit has been established. Around 90 acres of state land have also been transferred to the Housing, Urban Development and WASA Faisalabad authorities for the project.
Denmark-based M/S Niras has been selected as project consultant, while Munck Civil Engineering A/S, Denmark, has been appointed as contractor. Site mobilization has also progressed, with temporary offices, a contractor’s yard, store, laboratory, and workshop established. Construction of primary sedimentation tanks under stages one and two is currently underway, while work on secondary sedimentation tanks is also progressing.

Credit: INP-WealthPk