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Cement sector to benefit from $180mn financing pact signed with ISDB for Mohmand Dam Project

Islamabad 21, March, 2022: Pakistan and Islamic Development Bank (IsDB) Monday signed three Framework Agreements amounting to US$ 180 million to provide financing for the Mohmand Dam Hydropower Project (MDHP).

The financing agreements were signed by Secretary Economic Affairs Division Mian Asad Hayaud Din and Special Adviser to the President, IsDB Mohammad Jamal AlSatti.

The signing ceremony was witnessed by President IsDB Dr. Muhammad Al Jasser and Minister for Economic Affairs Omar Ayub Khan.
The representatives of Ministry of Water Resources and Water & Power Development Authority (WAPDA) were also present at the occasion.

Mohmand Dam Hydropower Project is a multi-purpose Concrete Faced Rockfill Dam being constructed on Swat River located at a distance of about 48 km from Peshawar and 5 km upstream of Munda Head Works in Mohmand District of Khyber Pakhtunkhwa which in addition to generate 1300 MW electricity, will enhance Pakistan’s Water Storage Capacity by 1,293-million-acre feet (MAF), provide food security buffer, provide 13.32 cubic of clean drinking water to the residents of Peshawar city and create more than 6,000 direct new employment opportunities for the local people.

Earlier President IsDB, Dr. Muhammad Al Jasser called on Minister for Economic Affairs Omar Ayub Khan and discussed the matters of mutual interest.

Both sides discussed the ongoing and future economic cooperation between Pakistan and IsDB and agreed to continue with the technical and financial assistance to Pakistan. Dr. Muhammad Al Jasser is in Islamabad on a three-day visit to attend the 48th Session of the OIC Council of Foreign Ministers.

Referring to the agreements, Dr. Muhammad Al Jasser, President IsDB on the occasion stated that “The Bank takes pride in working alongside its partners to support Pakistan in a strategic project of national importance. We are working with other partners from the Arab Coordination Group along with one of the most experienced authorities in Pakistan, WAPDA to develop a multi-purpose dam that will not only enhance energy and water supply but also the livelihoods of the local communities and better protect them against floods”.

He said the signing of the framework agreements for Mohmand Dam and Hydropower Plant project is testimony to the continuity of the strong partnership between Pakistan and IsDB Group, in alignment with the country’s priorities and our own commitments to allocate more financing to climate-friendly projects. “We are looking forward to ensuring the smooth implementation of the project and we hope to witness its operation in due time.”

Omar Ayub Khan recognized the Bank’s long standing and trusted partnership with Pakistan since its inception and its cumulative financing of US$ 14.5 billion in diverse sectors such as Energy, Finance, Transportation, Education & Health.

He further acknowledged IsDB’s co-financing amounting to US$ 180 million for MDHP which would significantly enhance Pakistan’s electricity generation and water storage capacity, and create new direct & indirect employment opportunity, generally in the Khyber Pakhtunkhwa province and especially in the local area of the project site.

The Minister deeply commended the role and endeavors of Dr. Muhammad Al Jasser, President IsDB and his team for arranging this financing at a very challenging time. This Agreement will further strengthen partnership between the Pakistan and the Bank, the Minister added.

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