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Saudi fund loans $240m for Pakistan’s hydropower dam

Officials signing the $240 million loan facility for Mohmand hydro-power complex in Pakistan

State-owned Saudi Fund for Development (SFD) has signed a $240 million loan agreement to support the Mohmand dam project, a hydropower complex in north-west Pakistan.

The dam will contribute to Pakistan’s energy security, increase sustainable water supply for agriculture and human consumption, and improve flood resilience, the SFD said.

Co-financed by the SFD, the Organisation of the Petroleum Exporting Countries, Kuwait Fund for Arab Economic Development and Islamic Development Bank, the project will use renewable sources to generate 800 megawatts of electricity production capacity, contributing to Pakistan’s energy security.

In addition, the storage of 1.6 million cubic meters of water will support sustainable agricultural practices, enable irrigation of 6,773 hectares of new land, and increase the total cropping area from 1,517 hectares to 9,227 hectares in the province.

SFD chief executive Sultan Abdulrahman al Marshad stated that the initiative is an extension of the fund’s continued support for development projects and programmes in Pakistan.

The SFD has financed around 41 development projects and programmes in Pakistan, amounting to approximately $1.4 billion. It has also funded oil derivatives worth more than $5.4 billion between 2019 and 2023 to support Pakistan’s economy.