Vienna (Austria)
Pakistan has signed a loan agreement with the OPEC Fund for International Development (OFID), co-funded by the Islamic Development Bank, Kuwait Fund and Saudi Fund. Under the agreement, the Fund will provide US $ 72 million for the Mohmand Dam Hydropower Project.
According to an official handout issued by Pakistan embassy in Vienna and released by Foreign Office in Islamabad , the loan agreement was signed by Pakistan’s Ambassador to Austria H.E. Aftab Ahmad Khokher and Mr. Abdulhamid Alkhalifa, Director General of the OPEC Fund.
The Mohmand Dam Hydropower Project, located in Mohmand District of Khyber Pakhtunkhwa, will increase the country’s installed renewables capacity by 800 MW and provide sustainable, potable water to two million residents in Peshawar city once completed. The project will also enhance food security through higher crop yields on almost 15,000 hectares of farmland, while improving the region’s resilience to floods. The dam will have a 1.6 million cubic metres reservoir and diversion tunnels that will feed into new and existing irrigation canals.