Islamic Development Bank (IsDB) has agreed to provide $180 million for Pakistan for the construction of the Mohmand Dam Hydropower Project.
Pakistan and IsDB signed three framework agreements amounting to $180 million. The financing agreements were signed by Secretary Economic Affairs Division Mian Asad Hayaud Din and Special Adviser to the President, IsDB Mohammad Jamal AlSatti, according to the state-run news agency APP.
The signing ceremony was witnessed by President IsDB Dr Muhammad Al Jasser and Minister for Economic Affairs Omar Ayub Khan.
Mohmand Dam Hydropower Project is a multi-purpose concrete-faced rockfill dam being constructed on Swat River located at a distance of about 48 kilometres from Peshawar and 5 kilometres upstream of Munda head works in Mohmand district of Khyber-Pakhtunkhwa.
The dam in addition to generating 1300 megawatts of electricity, will enhance Pakistan’s water storage capacity by 1,293-million-acre-feet (MAF), provide food security buffer, provide 13.32 cubic of clean drinking water to the residents of Peshawar city and create more than 6,000 direct new employment opportunities for the local people.
Earlier President IsDB, Dr Muhammad Al Jasser called on Omar Ayub Khan and discussed the matters of mutual interest.
Both sides discussed the ongoing and future economic cooperation between Pakistan and IsDB and agreed to continue with the technical and financial assistance to Pakistan. Dr Muhammad Al Jasser is in Islamabad on a three-day visit to attend the 48th Session of the OIC Council of Foreign Ministers.
Referring to the agreements, Dr Al Jasser stated that “The bank takes pride in working alongside its partners to support Pakistan in a strategic project of national importance. We are working with other partners from the Arab Coordination Group along with one of the most experienced authorities in Pakistan, WAPDA to develop a multi-purpose dam that will not only enhance energy and water supply but also the livelihoods of the local communities and better protect them against floods”.
He said the signing of the framework agreements for Mohmand Dam and Hydropower Plant project is testimony to the continuity of the strong partnership between Pakistan and IsDB Group, in alignment with the country’s priorities and our own commitments to allocate more financing to climate-friendly projects. “We are looking forward to ensuring the smooth implementation of the project and we hope to witness its operation in due time.”
Omar Ayub Khan recognised the bank’s long-standing and trusted partnership with Pakistan since its inception and its cumulative financing of US$ 14.5 billion in diverse sectors such as energy, finance, transportation, education and health.
