Saudi Fund for Development approved the loan at highly concessional terms
Saudi Arabia has approved Rs37.4 billion (901 million Saudi Riyal) loan to fund Pakistan’s 800MW Mohmand Hydropower Project, officials said.
The Saudi Fund for Development (SFD) has approved this financing at highly concessional terms with a 2% interest rate and a 25-years repayment period, Pakistan’s energy ministry said.
The development was shared after a meeting of Ambassador of the Kingdom of Saudi Arabia in Pakistan Nawaf bin Saeed Al-Maliki with Pakistan’s Federal Minister for Economic Affairs Omar Ayub Khan in Islamabad on Wednesday.
The dam is being constructed on the Swat River in Pakistan’s northwestern Khyber Pakhtunkhwa province and will have the capacity to generate 800 megawatts of electricity and irrigate 16,000 acres of land.
Mohmand Dam will play a vital role in the socio-economic uplift of the province. Mohmand Hydropower Project will not only help unleash the hydropower potential of the Khyber Pakhtunkhwa province but also improve energy security by increasing the share of hydel power in the country’s energy mix.
“Our government is focusing on environment-friendly and affordable energy through the development of solar, wind and hydel resources”, the minister said. Economic Affairs Minsiter appreciated the Saudi support in the priority development areas.Khan said Pakistan’s Water and Power Development Authority was committed to completing the project by 2025.
Both sides also discussed the bilateral economic cooperation and committed to expediting the implementation of ongoing development projects.
Saudi Ambassador assured of continued support at all levels to further strengthen the economic cooperation between the two brotherly countries. The “Saudi side is committed to play a much stronger role in the socioeconomic development of Pakistan” he said. The Ambassador also appreciated the role of Pakistani workers in the development of Saudi Arabia.