Loan Agreement For Mohmand Dam Hydropower Project Signed

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Loan agreement for Mohmand Dam Hydropower project signed

This significant financing comes as a result of the Kuwait Fund's commitment to extend a total of 100 million dollars to support the Mohmand Dam Hydropower Project.

ISLAMABAD: (UrduPoint/Pakistan Point News-June 14th, 2024) A Subsidiary Loan Agreement worth 25 million for the Mohmand Dam Hydropower Project was signed in Islamabad today.

It was signed between the Ministry of Economic Affairs and the Water and Power Development Authority.

This significant financing comes as a result of the Kuwait Fund's commitment to extend a total of 100 million Dollars to support the Mohmand Dam Hydropower Project. The total financing will be disbursed through four equal loans, each amounting to 25 million dollars. The first loan agreement was signed between the Government of Pakistan and the Kuwait Fund this month.

The Mohmand Dam is a comprehensive infrastructure project designed to address multiple needs. It aims to generate approximately 2,862 GWH of electricity annually with an installed capacity of 800 MW, 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.

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.

Furthermore, the project will supply 13.32 cubic meters per second of drinking water to Peshawar.

Abdullah Hussain

Abdullah Hussain is a staff member who writes on politics, human rights, social issues and climate change.