Saudi Arabia will provide a $240 million loan to co-finance Pakistan’s Mohmand multipurpose dam project, a major hydro-power complex, being built in the Mohmand district of Khyber Pakhtunkhwa province.
The hydropower complex will contribute to Pakistan’s energy security, increase sustainable water supply for agriculture and human consumption and improve resilience to floods.
The project is co-financed by the Saudi Fund for Development, OPEC, Islamic Development Bank, and the Kuwait Fund for Arab Economic Development.
The Saudi loan agreement was signed by the SFD CEO, Sultan Abdulrahman Al-Marshad, and the Federal Secretary for the Ministry of Economic Affairs, Pakistan, Dr. Kazim Niaz, with the presence of the Ambassador of Saudi Arabia to Pakistan, Nawaf bin Said Al-Malki.
During the agreement signing ceremony, the CEO of SFD emphasized the strong developmental ties between Saudi Arabia and Pakistan. He said that this initiative is an extension of SFD’s continued support for development projects and programs in Pakistan. SFD has financed around 41 development projects and programs in Pakistan, amounting to approximately $1.4 billion, and has financed oil derivatives worth more than USD 5.4 billion between 2019 and 2023.
Dr. Kazim Niaz expressed his sincere appreciation and gratitude to the Kingdom of Saudi Arabia for its persistent support for the development sectors in Pakistan. About the current project, he said: “The use of renewable energy would enable sustainable energy as well as water sources, which would enhance water and food security.”
The Mohmand Multipurpose Dam Project will enhance water and food security, and improve the standard of living for people living in the Khyber Pakhtunkhwa province, where almost 80% of the population resides in rural areas, boosting the region’s socioeconomic development by creating employment opportunities and reducing poverty levels, according to the official statement.
Utilizing renewable energy sources, the project “will generate 800 MW of electricity production capacity, contributing to Pakistan’s energy security. In addition, the storage of 1.6 million m3 of water will support sustainable agricultural practices, enable irrigation of 6,773 hectares of new land, and increase the total cropping area from 1,517 hectares to 9,227 hectares in the province, facilitating agricultural activities.”
The 800MW Mohmand hydropower project is being constructed on the Swat River in the Mohmand district, Khyber Pakhtunkhwa province, Pakistan. The project involves the construction of a dam and an integrated powerhouse.
- Project Type: Hydropower project
- Location: Mohmand district, Khyber Pakhtunkhwa
- Capacity: 800MW
- Estimated Investment: PKR 309 billion
- Construction Started: March 2019