The Islamic Development Bank (IsDB) is expected to approve US$180 million this week for the Mohmand Dam and Hydropower Project in Khyber Pakhtunkhwa (KP). China Gezhouba Group of Companies (CGGC) is the lead firm in Joint Venture (JV) building the project.
President of IsDB, Muhammad Sulaiman Al-Jasser, revealed this during his meeting with Federal Minister for Planning Development & Special Initiatives Asad Umar in Islamabad on Friday.
IsDB supports wide-ranging socio-economic development programs in Pakistan. “The IsDB is expected to approve US$180 million for the Mohmand Dam and Hydropower Projects on 18th December 2021,” Mr. Al-Jasser pointed out and added that the had already approved US$ 72.5 million under the IsDB COVID-19 Vaccine Support for Pakistan in April 2021.
Asad Umar requested IsDB to support the Bank’s long-term finance operations in Pakistan through a guarantee structure that would “strengthen the bankability of the projects”.
Mr. Umar added that the Planning Commission is preparing a Three Rolling Growth Strategy (3YRGS) and requested the Bank support and alignments of its medium terms operations through the instruments of Member Countries Partnership Strategy, which Mr. Al-Jasser welcomed and assured full cooperation in both the alignment and implementation of 3YRGS.
Prime Minister Imran Khan performed the groundbreaking of Mohmand Dam Hydropower Project on May 2, 2019. The contract of the project has been awarded to a JV comprising CGGC, as the lead firm and Descon as its partner. The contract of the project is worth Rs 183.523 billion.
The project is being built on the Swat River about five kilometers upstream of Munda Head Works in Mohmand Tribal district in KP. The project with 800 MW power generation is expected to generate 2,862 GW energy annually and will bring 16,737 Acres land under cultivation.
