Saudi Arabia has approved a funding of 901 million Saudi Riyal (Rs. 37.4 billion) for the construction of Mohmand Hydropower Dam, says the Economic Affairs Ministry.
According to an official statement issued by the Ministry, Saudi Arabia Ambassador to Pakistan Nawaf Bin Said Al-Maliki met the federal minister for Economic Affairs Omar Ayub Khan here on Wednesday.
The Saudi Ambassador briefed the Minister of Economic Affairs on the recent successful visit of the Prime Minister of Pakistan Imran Khan to Saudi Arabia.
According to the Ministry, the Saudi envoy shared that funding of 901 million Saudi Riyal was approved for the construction of Mohmand Dam from the Saudi Development Fund. The funding is for 25 years and an interest rate of two percent will be charged on it, said the envoy of Saudi Arabia.
Omar Ayub assured the Saudi envoy of the expeditious utilization of funds so that the construction of the project could be completed. The government is currently focused on improving renewable energy sources for the generation of power in the country, said the minister.
This dam will be constructed on Swat River in District Mohmand of Khyber Pakhtunkhwa Province and generate 800MW electricity. It will also irrigate 16,000-acre land and boost agriculture productivity in the region. This dam will play a vital role in the socio-economic uplift of the province.
Minister for Economic Affairs highlighted that Mohmand Hydropower Project will not only help unleash the hydropower potential of the Khyber Pakhtunkhwa Province but also improve energy security by increasing the share of hydel power in the country’s energy mix. “Our government is focusing on environment-friendly and affordable energy through the development of solar, wind and hydel resources”, he added. The Minister for Economic Affairs appreciated the Saudi support in the priority development areas.
Both sides also discussed the bilateral economic cooperation and committed to expedite the implementation of ongoing development projects. The Saudi Ambassador assured continued support at all levels to further strengthen the economic cooperation between the two brotherly countries. The Saudi Ambassador said that the Saudi side is committed to play a much stronger role in the socio-economic development of Pakistan. The Ambassador also appreciated the role of Pakistani workers in the development of Saudi Arabia.