ISLAMABAD: Saudi Fund for Development (SFD) has approved Rs37.4 billion (SR901 million) for Mohmand Hydropower Project, said Ambassador of the Kingdom of Saudi Arabia in Pakistan Nawaf bin Saeed Al-Malkiy in a meeting with the Federal Minister for Economic Affairs Omar Ayub Khan in his office.
The Saudi Ambassador apprised the minister about the successful visit of the Prime Minister of Pakistan Imran Khan to Saudi Arabia and shared its outcomes.
During the meeting, the Saudi Ambassador informed that the SFD has approved SR901 million for Mohmand Hydropower Project.
The SFD has approved this financing at highly concessional terms with 2 per cent interest rate and 25-years repayment period. This dam will be constructed on Swat River in District Mohmand of Khyber Pakhtunkhwa Province and generate 800MW of electricity.
It will also irrigate 16,000 acre land and boost agriculture productivity in the region. This dam will play vital role in socio economic uplift of the province.
Omar Ayub highlighted that Mohmand Hydropower Project will not only help unleash hydropower potential of the Khyber Pakhtunkhwa Province but also improve energy security by increasing the share of hydel power in the country’s energy mix.
“Our government is focusing on environment friendly and affordable energy through development of solar, wind and hydel resources”, he added. The minister appreciated the Saudi support in the priority development areas.
Both sides also discussed bilateral economic cooperation and committed to expedite the implementation of ongoing development projects.
The Saudi Ambassador assured of continued support at all level to further strengthen the economic cooperation between the two brotherly countries.
The Saudi ambassador said that the Saudi-side is committed to play a much stronger role in the socioeconomic development of Pakistan.