Lahore Composting Plant is currently operating with a capacity of 300 tons per day (TPD). It will be expanded to 1,000 TPD by 2009 with a possibility of further expansion up to 1,500 TPD. All these expansions can be materialised within the present premises of LCL with the co-operation of World Bank at a total cost of $5.524 million. In an update project report, World Bank expert, Mihaly Kopanyi, said that Lahore Compost Ltd would be the sole implementing agent of this carbon finance project. The LCL has been operating the composting plant on a pilot basis since March 31, 2006. There is no tradition of composting in Pakistan, but the company has done extensive research on compost manufacturing and its utilisation. The LCL managers have contacted many composting companies around the world in order to benefit from their experience and have personally visited a few composting plants in Europe, USA, and India to discuss issues involved in the manufacturing, marketing and utilisation of compost. In addition, the supplier trained LCL staff to handling the composting machinery and they are successfully managing the existing facility, Mihaly Kopanyi added. WB report said that LCL has developed stable and professional technical, financial, and business management teams. The LCL has been operating under the guidance and financial control of the Saif Group, the sole owner of LCL and a reputable investor in energy, environment, and infrastructure sectors in Pakistan. The investment programme for the planned expansion of capacity has been approved by LCL management as well as the Board of the Saif Group, which has arranged sufficient financing for the capacity development and operation of the composting plant with the envisioned financial support form the carbon finance. LCL has also successfully developed a marketing program that including sales promotion, farmers' education, sound contractual arrangements, an initial logistics and storage network, and a network of 10 regional distributors. LCL operates the composting plant under a concession agreement with the City District Government, Lahore. LCL will operate the project for a period of 25 years after which it will be transferred back to the city district government. The city district government is responsible for the collection of waste and for provision of up to 1,500 TPD waste to LCL at the gate of the Mehmood Booti landfill during the validity of the present concession agreement. WB report stated that Pakistan is the most urbanised country in the South Asian region with 35 percent of its population living in the urban areas as compared to the regional average of 29 percent. The annual urban growth rate of 3.5 percent in Pakistan is also well above the regional growth rate of 2.4 percent. Cities and towns in Pakistan are not only growing in size and number, they are also gaining influence and impact on the macro-economy of the country. Pakistan's largely urban-based manufacturing and services sectors accounted for 77 percent of GDP in 2003, while contributing to over 90 percent of GDP growth between 1999 and 2003.