The IsDB approves a $180 million loan for the Mohmand Dam Islamabad’s Islamic Development Bank signed framework agreements Monday to loan Pakistan $180 million for the Mohmand Dam Hydropower Project. The loans will be used to build a hydroelectric dam (MDHP).
It was signed by Secretary of Economic Affairs Mian Asad Hayaud Din and the special adviser to the President of IsDB Mohammad Jamal Al-Satti.
It was also attended by IsDB President Dr Muhammad Al Jasser, who is in Pakistan for three days to attend the 48th meeting of the Council of Ministers of the OIC. Dr. Al Jasser also met with Minister for Economic Affairs Omar Ayub Khan and talked about things they both care about, an official statement said.
Both sides talked about how Pakistan and the IsDB will work together in the future. They agreed to keep giving Pakistan technical and financial help.
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For a total of $180m, they signed three framework agreements. They were for financing for Rs310bn worth of MDHP. The construction contract for the project was handed to a consortium of China Gezhouba Group Company (CGGC) and Abdul Razak Dawood’s Descon Engineering in 2019. Construction began in September 2019 and will be finished by December 2025.
MDHP is a multi-purpose concrete-faced rockfill dam that is being built on the Swat River in the Mohmand District of Khyber Pakhtunkhwa. It is about 48 kilometres from Peshawar and 5 kilometres upstream of Munda Head Works. People in Peshawar, Pakistan, will get 13.32 cubic metres of clean drinking water and more than 6,000 jobs due to this project. It will generate 1,300 megawatts of electricity and increase Pakistan’s water storage capacity by 1,293 million acre-feet (MAF).
Dr Muhammad Al Jasser, the head of the bank, said that the bank took great pride in working with its partners to help Pakistan with a project of national significance. The Arab Coordination Group and Pakistan’s Water and Power Development Authority are working together to build a multi-purpose dam that will not only provide more energy and water but also improve the lives of the people living near it and protect them from flooding.
The signing of the framework agreements for the Mohmand Dam and Hydropower Plant project shows that Pakistan and the IsDB Group have been working together for a long time. This is in line with Pakistan’s priorities and the IsDB Group’s promise to invest more in climate-friendly projects, the ISDB chief said.
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