ISLAMABAD: The Ministry of Economic Affairs (MoEA) and Water and Power Development Authority (Wapda) signed a Subsidiary Loan Agreement (SLA) amounting to $25 million for the Mohmand Dam Hydropower Project.

The agreement was signed here on Friday.

MoEA Secretary, Dr Kazim Niaz, signed on behalf of the ministry, while Chairman Wapda Lt Gen Sajjad Ghani (retired) represented Wapda.

Nassar Abdulrahman Jasser Al Mutairi, the ambassador of Kuwait in Pakistan, graced the ceremony with his presence.

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

The total financing will be disbursed through four equal loans, each amounting to $25 million.

The first loan agreement was signed between the Government of Pakistan and the Kuwait Fund on June 3, 2024, in Kuwait.

The Mohmand Dam is a comprehensive infrastructure project designed to address multiple needs.

It aims at generating 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 from the Mohmand Dam reservoir to Peshawar city in Khyber Pakhtunkhwa, addressing the region’s need for a stable drinking water supply.

Copyright Business Recorder, 2024