ISLAMABAD: Saudi Arabia will provide financing of over 901 million Saudi Riyal (Rs37.4 billion) for the Mohmand Hydropower Project.
This was announced by Ambassador of Saudi Arabia in Pakistan Nawaf bin Said Al-Maliki who called on Minister for Economic Affairs Omar Ayub. During the meeting, the Saudi Ambassador informed that Saudi Fund for Development has approved this financing at highly concessional terms with two percent interest rate and 25-years repayment period.
Speaking on the occasion, Omar Ayub highlighted that Mohmand Hydropower Project will not only help unleash the hydropower potential of the Khyber Pakhtunkhwa Province but also improve energy security by increasing share of hydel power in the country’s energy mix.
He said the government is focusing on environment-friendly and affordable energy through the development of solar, wind and hydel resources. The minister appreciated the Saudi support in the priority development areas.
The Saudi Ambassador assured of continued support at all levels to further strengthen the economic cooperation between the two brotherly countries. He said that Saudi Arabia is committed to playing a much stronger role in the socio-economic development of Pakistan.
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Mohmand dam will be constructed on Swat River in District Mohmand of Khyber Pakhtunkhwa Province and generate 800MW electricity. It will also irrigate 16,000 acrse land and boost agriculture productivity in the region and will play vital role in socio-economic uplift of the province.
In addition, the dam will provide 300 million gallons of drinking water per day to Peshawar. Mohmand Dam is of immense importance as it ican protect Peshawar, Charsadda and Naushehra from devastating floods. In terms of electricity, irrigation, and flood protection, the country will accrue an annual benefit of Rs51 billion after the completion of the dam.
There are only two major dams in Pakistan – Tarbela and Mangla. The former was built in 1977 and its storage capacity has dropped to 6.4 MAF against the earlier 9.4 MAF. The capacity of Mangla Dam has been increased by 3 MAF to 7.4 MAF after a structure-raising project.
