According to official sources, a Kuwait Fund Appraisal Mission is in Pakistan to discuss and finalise the financing deal for the Mohmand Dam Hydropower Project. On October 20, 2022, the Kuwait Fund Appraisal Mission will hold its initial meeting with representatives from the Economic Affairs Department (EAD) and other relevant officials.
According to the sources, the wrap-up meeting will take place on October 31, 2022, and Kuwait Fund Appraisal Mission will present the draught loan agreement to EAD for evaluation and debate by all parties involved. The proposed loan agreement will reportedly be signed by both parties on November 1, 2022, in the presence of all parties involved.
The government has agreed to a $72 million loan for the Mohmand Dam Hydropower Project with the OPEC Fund for International Development.
Damaged by recent flooding, the Mohmand Dam is a multi-purpose concrete-faced rock-filled dam on the Swat River in Mohmand Tribal District, KP. Its goals are flood mitigation, irrigation/agriculture development of 16,737 acres, further command area enhancement at the request of the government of Khyber Pakhtunkhwa, hydel generation, and socioeconomic uplift of the local population.
A 1.6 million m3 reservoir and diversion tunnels that feed into both new and old irrigation canals will be part of the dam. When finished, the Mohmand Dam will add 800 MW to the installed renewable capacity of the nation and supply two million people in Peshawar metropolis with sustainable drinking water. By increasing agricultural yields on nearly 15,000 hectares of farmland, the project will help increase food security and strengthen the area’s flood resistance.
