The government of Pakistan and Islamic Development Bank (IsDB) on Monday signed three Framework Agreements amounting to $180 million for providing financing to Mohmand Dam Hydropower Project.
The signing ceremony was witnessed by Dr. Muhammad Al Jasser, President IsDB and Omar Ayub Khan, Minister for Economic Affairs while the Financing Agreements were signed by Mian Asad Hayaud Din, Secretary Economic Affairs Division and Mohammad Jamal AlSatti, Special Adviser to the President, IsDB.
Mohmand Dam Hydropower project is a multi-purpose concrete faced rockfill dam being constructed on Swat river located at a distance of about 48km from Peshawar and 5km upstream of Munda headworks in Mohmand district of Khyber Pakhtunkhwa which in addition to generate 1300 MW 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.
Referring to the agreements, Dr. Muhammad Al Jasser, President IsDB on the occasion 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. 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.”
Both sides discussed the ongoing and future economic cooperation between Pakistan & IsDB and agreed to continue with the technical and financial assistance to Pakistan.
It is pertinent to note that President IsDB Muhammad Al Jasser is in Islamabad on a three-day visit to attend the 48th session of the OIC Council of Foreign Ministers.
