Saudi Ambassador in Pakistan, Nawaf bin Saeed Al-Malkiy, met with the Federal Minister for economic affairs, Omar Ayub Khan, in Islamabad on Wednesday. In the meeting, the Saudi envoy said that the Kingdom has promised to lend a loan of 901 million Saudi Riyal (37.4 billion Pakistani Rupees) for the construction of Mohmand Dam. The loan will be given for 25 years at a concessional rate of 2%.
According to an official statement issued after the meeting, the dam will be constructed on Swat river in district Mohmand of KPK with a gross water storage capacity of 1.2 MAF and will generate 800 MW of electricity. The dam will also irrigate 16,000 acres of land and will play a key role in the socio-economic advancement of the province.
Omar Ayub emphasized that besides unfastening the hydropower potential of KPK province, this Hydropower project will also enhance energy security by increasing the share of hydel power in country’s total energy.