Spokesman Report

ISLAMABAD: Islamic Development Bank (IsDB) Group President, Dr. Muhammad Al Jasser, was in Islamabad to attend the 48th session of the Council of Foreign Ministers of Organization of Islamic Cooperation (OIC) on 21 March, 2022, also attended the signing of three framework financing agreements worth US$ 180 million between the Bank and the Government of Islamic Republic of Pakistan.

The signing took place, where, IsDB Group President, Dr. Muhammad Al Jasser, and Pakistan’s Economic Affairs Minister, Omar Ayub Khan, witnessed the signing ceremony between IsDB Group President’s Special Advisor Mohammad Jamal Alsaati, and the country’s Secretary, Economic Affairs Division, Mian Asad Hayaud Din.

On the occasion, IsDB Group President Dr. Muhammad Al Jasser, said: “The Islamic Development Bank takes pride in working alongside its partners to support Pakistan in such a strategic project of national importance. We are working with other players from the Arab Coordination Group 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.

The signing of these agreements 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 it’s operation in due time.”

The financing approval for the mega project came during the 343rd meeting of IsDB Board of Executive Directors, in Jeddah, on 18 December 2021,  under the chairmanship of IsDB Group President.

Located in Pakistan’s Khyber-Pakhtunkhwa (KP) Province, the Mohmand Dam and Hydropower Project is a national priority and lifeline for the country which aims to contribute to national energy and water security, as well as the regional socio-economic development in KP Province.

Once completed, this new multi-purpose dam will enhance energy generation and provide sustainable water resources for agriculture and human consumption in KP, thus uplifting the livelihoods of marginalized communities, while improving the region’s resilience to floods.

The project is expected to add 800 MW to Pakistan’s installed hydropower capacity and generate approximately 2,862 GWh annually, provide nearly 13.32 m3/second of potable water to two million inhabitants in Peshawar city, help irrigate and initiate agricultural activities on 6,773 ha of new land and increase the existing cropping area from 1,517 ha to 9,227 ha.

It will also support Pakistan’s efforts to achieve the goal stated in its Vision 2025 of more than doubling its installed hydropower capacity by 2030 as part of its pillar IV “Energy, Food and Water Security”, as well as SDG-2 (Food Security), SDG-6 (Clean Water), and SDG-7 (Clean Energy), while embodying SDG-17 (Partnerships for the Goals).

In addition to the financing from IsDB, it is expected that the OPEC Fund, Kuwait Fund for Arab Economic Development, and the Saudi Fund for Development would also join in co-financing the project by providing a total amount of US$ 410 million.

When operational, the Mohmand Dam will be the 5th highest Concrete-Face-Rock-Filled Dam (CFRD) in the world and create an active storage reservoir of approximately 1,594 million m3 of capacity. The first power-generating unit is scheduled to be operational by December 2025.