The Pakistani government and the Islamic Development Bank (IsDB) have signed three Framework Agreements totaling $180 million to fund the Mohmand Dam Hydropower Project.
Dr. Muhammad Al Jasser, President IsDB, and Omar Ayub Khan, Minister for Economic Affairs, were present at the signing ceremony, while Mian Asad Hayaud Din, Secretary Economic Affairs Division, and Mohammad Jamal AlSatti, Special Adviser to the President, IsDB, signed the Financing Agreements.
The Mohmand Dam Hydropower Project is a multi-purpose concrete faced rockfill dam being built on the Swat River in Mohmand district of Khyber Pakhtunkhwa, about 48 kilometres from Peshawar and 5 kilometres upstream of Munda headworks. It will produce 1300 MW of electricity, increase Pakistan’s water storage capacity by 1,293-million-acre feet (MAF), provide a food security buffer, and provide 13.32 cubic metres of clean drinking water to Peshawar.
Read more: Construction work on 800-MW Mohmand Dam is under progress on 13 sites
“The bank takes satisfaction in collaborating its partners to support Pakistan in a critical initiative of national importance,” said Dr. Muhammad Al Jasser, President of the IsDB, on the occasion. We’re collaborating with other Arab coordination group members, as well as one of Pakistan’s most competent authorities, WAPDA, to build a multi-purpose dam that will improve not only energy and water supplies, but also local populations’ livelihoods and flood protection.
The signing of the framework agreements for the Mohmand Dam and Hydropower Plant project demonstrates Pakistan’s and the IsDB group’s strong relationship, which is in line with the country’s goals and our own commitments to contribute more funding to climate-friendly projects. We are looking forward to guaranteeing the project’s seamless execution, and we expect to see it in action soon.”
Both sides reviewed current and prospective economic cooperation between Pakistan and the IsDB, and agreed to continue providing Pakistan with technical and financial assistance.
President IsDB Muhammad Al Jasser is now in Islamabad for a three-day visit to attend the OIC Council of Foreign Ministers’ 48th session.
Significance of Mohmand dam hydropower project
Pakistan is amongst a few countries of the world with an acute scarcity of dams to fulfill the irrigation and electricity needs. The present government has come ahead with the determination to build small and big dams in the country. Mohmand Dam is one of those dams which are going to be constructed with foreign aid. The dam is situated at Mohmand district of Swat valley in Khyber-Pakhtunkhwa.
The dam will have the capacity of generating 740 megawatts of hydroelectricity. It will irrigate 15,000 acres of land. It will be an effective source of controlling the flood in the province. It will provide Rs.4.98 billion annual water storage benefit, Rs.19.6 billion power generation benefits by producing 2.4 billion units of electricity annually. It will provide an abundance of clean water to the residents of Peshawar and will create more than 6,000 jobs.
The dam’s water storage capacity will be 1,293 million-acre feet (MAC). The construction of the dam is in full swing. On Monday, the government of Pakistan and the Islamic Development Bank signed three framework Agreements, amounting to $180 million to finance this mega project of the country. The agreement was signed by Mian Asad Hayaud Din, the Secretary of Economic Affairs Division, and Muhammad Alsatti, the Special Advisor to the President of Islamic Development Bank.
