https://arab.news/mnct2
- Total project financing will be disbursed through four equal payments, each amounting to $25 million
- Pakistan has been building small-scale hydropower facilities to meet its pressing energy requirements
ISLAMABAD: Pakistan’s Economic Affairs Ministry signed a subsidiary loan agreement of $25 million with the Water and Power Development Authority for the construction of the Mohmand Dam Hydropower Project, being financed by the Kuwait Fund with a $100 million contribution.
Pakistan’s strategy to enhance its energy infrastructure includes a move toward constructing hydropower facilities, supported by multiple international agreements aimed at addressing the country’s pressing energy requirements.
Many of these small-scale projects have also been facilitated under the multibillion-dollar China-Pakistan Economic Corridor, backed substantially by Beijing.
According to Radio Pakistan, the total financing for Mohmand Dam will be disbursed through four equal loans, each amounting to $25 million, with the agreement signed between the two countries earlier this month.
“The Mohmand Dam is a comprehensive infrastructure project designed to address multiple needs,” Radio Pakistan reported. “It aims to generate approximately 2,862 GWH [gigawatt hours] of electricity annually with an installed capacity of 800 MW [megawatts], significantly reducing the existing energy supply gap.”
“Additionally, the dam will create an active storage reservoir with a capacity of about 1,594 million cubic meters, ensuring a reliable and sustained supply of irrigation water,” it continued. “The 213-meter high structure will also play a critical role in flood control, mitigating the risk of flood damage and providing essential flood protection.”
Pakistan and Kuwait agreed to enhance bilateral economic cooperation in recent meetings held between their top officials.
The Kuwait Fund has also actively supported several projects in Pakistan previously, focusing on sustainable development and infrastructural enhancements.