SFD inks $240m accord for Mohmand dam
ISLAMABAD: The Saudi Fund for Development (SFD) has signed a $240 million loan agreement to finance the Mohmand Dam project, a major hydropower complex that will contribute to Pakistan’s energy security, increase sustainable water supply for agriculture and human consumption and mitigate flooding will improve. resistance. .
The agreement was signed by SFD CEO Sultan Abdurrahman Al-Marsha and Federal Secretary of the Ministry of Economy Dr. Karim Niaz. The ambassador of Saudi Arabia, Nawaz bin Said Al-Malik, attended the signing ceremony.
This loan will help bridge the funding gap and contribute to promoting and achieving the Sustainable Development Goals (SDGs), according to the Ministry of Economic Affairs.
The Mohmand Multipurpose Dam project will improve water and food security and improve the living standards of the people of Khyber-Pakhtunkhwa, where nearly 80% of the population lives in rural areas, boosting the socio-economic development of the region by creating employment opportunities and reduce poverty. levels.
The project aligns with the Sustainable Development Goals to ensure food security, clean water and clean energy.
The project, which is co-financed by SFD, OPEC, the Islamic Development Bank and the Kuwait Fund for Arab Economic Development, is expected to have a significant impact on Pakistan’s energy and water sector.
By using renewable energy sources, the project will generate 800 MW of electricity, contributing to Pakistan’s energy security.
During the agreement signing ceremony, the SFD CEO emphasized the strong development ties between the Kingdom of Saudi Arabia and Pakistan.
The CEO also stressed the importance of joint cooperation between development funds, a fact proven by this project. He further emphasized that this initiative was an extension of SFD’s continued support for development projects and programs in Pakistan from its inception.
SFD has funded about 41 projects and development programs in Pakistan worth about US$1.4 billion.
In addition, between 2019 and 2023, SFD has financed oil derivatives worth more than $5.4 billion to support Pakistan’s economy. This came as a continuation of the government of Saudi Arabia’s support for sister country Pakistan to build a sustainable economy, the ministry said.
Nia acknowledged the significant contribution made by the kingdom in funding the vital project and stressed its importance in producing a positive impact on the development of Pakistan and its people.
The use of renewable energy would enable both renewable energy and water resources, which would improve water and food security.
