ISLAMABAD – Pakistan has signed a loan agreement with the OPEC Fund for International Development for the execution of the Mohmand Dam Hydropower Project.
Under this agreement, the OPEC Fund will provide $72 million to Pakistan government in collaboration with the Islamic Development Bank, Kuwait Fund and Saudi Fund, Radio Pakistan reported.
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 meters reservoir and diversion tunnels that will feed into new and existing irrigation canals.
