The Islamic development bank has signed a deal to extend $180 million loans to Pakistan to construct the Mohmand Dam Hydropower Project. The agreements were signed between the special adviser to the President of the Islamic development bank, Mohammad Jamal-Al-Satti, and economic affairs secretary Mian Asad Hayaud Din to support Pakistan’s green agenda. The President of the Jeddah-based bank was also present and witnessed the signing ceremony. The President of the bank is in Islamabad for the 48th session of the Organization of Islamic Conference Council of Foreign Ministers meeting.
Mr. Jasser also held a meeting with the economic adviser Mr. Omar Ayub to discuss matters of mutual interest, especially regarding future cooperation and assistance. The $180 million funding would help finance the construction of MDHP and aims to add 1,300 megawatts of power to the national grid. “We are working with other players from the Arab Coordination Group to develop a multi-purpose dam. It will not only enhance energy and water supply, but also the livelihoods of the local communities, and better protect them against floods,” IsDB’s President said.
Read More: 6,000 workers begin construction work of Mohmand Dam
“The signing of these agreements is testimony to the continuity of the strong partnership between Pakistan and IsDB Group. It aligns with the country’s priorities and our own commitments to allocate more financing to climate-friendly projects,” Muhammad Al Jasser added.
Currently, the contract for project construction is awarded to Descon Engineering of SAPM for Commerce and Industry Abdul Razak Dawood and a Chinese consortium. The Dam is being constructed on the Swat River, approximately 45 km from Peshawar and 5km upstream of Munda Head Works KPK.
Upon completion, the Dam would provide a sustainable water resource for agricultural and human consumption. In addition to enhancing Pakistan’s water storage capacity by 1,293-million acre-feet (MAF), the damn would add 13.32 cubic of clean drinking water to the residents of Peshawar city and provide job opportunities to more than 6000 people.
Read More: Mohmand Dam to be operational by 2025
Talking about the agreements, Dr. Muhammad Al Jasser stated, “the bank takes pride in working alongside its partners to support Pakistan in a strategic project of national importance.”
The Prime Minister of Pakistan also underscored the importance of the Jeddah-based bank’s assistance and appreciated the bank’s efforts to help Pakistan procure Covid-19 vaccines.
The signing of the agreements is a testimony to the strong relations the two partners enjoy and their commitment to climate-friendly projects. The chief of the Jeddah-based bank said that he looked forward to ensuring the smooth implementation of the project and hoped that the project would be completed in due time.