Saudi Arabia approves Rs37.4b for construction of Mohmand dam
Islamabad: Saudi Arabian ambassador to Pakistan, Nawaf bin Saeed Al-Malkiy, informed a Pakistani official that the kingdom has approved 901 million Saudi Riyals (Rs37.4 billion) for Mohmand Hydro power Project.
The Saudi envoy shared this during his meeting with Federal Minister for Economic Affairs Omar Ayub, as well as discussing the success of Prime Minister Imran Khan.
He said the financing of 901 million Saudi Riyals was approved for the construction of the Mohmand Dam by the Saudi Development Fund. “The loan is for 25 years and you will be charged an interest rate of two percent,” said the envoy from Saudi Arabia.
Saudi Arabia has approved a funding of 901 million Saudi Riyal for the construction of Mohmand Hydropower Dam, reported quoting Kingdom’s Ambassador to Pakistan Nawaf Bin Said Al-Maliki pic.twitter.com/wXeU0tdw0l
— Saudi Pro (@saudi_pro) June 10, 2021
Omar Ayub assured Saudi envoy Nawaf Bin Saeed Al-Maliki the immediate use of the funds to speed up the construction of the project. “The government is currently focused on improving renewable energy sources for power generation in the country,” he said.
On May 19, Prime Minister Imran Khan inaugurated the Mohmand Dam construction site, where he claimed previous governments, instead of building dams for generations of affordable electricity, have signed exorbitant deals to make money from the top.
With these expensive deals that we are bound by, the prime minister said speaking to the media there, we have to pay them whether we buy electricity from them or not, so our capacity payments will increase to Rs.1455 billion for the year. 2023.
However, Prime Minister Khan said his government is concerned about the nation’s future and not just winning the upcoming elections, for which it has launched 10 cheapest electric projects to be completed in 2028.
H.E. Nawaf bin Saeed Al-Malkiy @KSAembassyPK called on the Minister for Economic Affairs @OmarAyubKhan and conveyed approval of SAR 901 Mn (PKR 37.4 Bn) for Mohmand Hydropower Project by @SaudiFund_Dev. It is highly concessional financing @ 2% with 25-years repayment period. pic.twitter.com/dY9rie83lS
— Economic Affairs Division, Government of Pakistan (@eadgop) June 10, 2021
Both sides also discussed the bilateral economic cooperation and committed to expedite the implementation of ongoing development projects.
The Saudi ambassador, according to the statement, assured the minister of continued support at all levels to further strengthen the economic cooperation between the two brotherly countries.
He said that the Saudi side is committed to play a much stronger role in the socio-economic development of Pakistan. The ambassador also appreciated the role of Pakistani workers in the development of the kingdom.