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- OPEC Fund supports Pakistan’s energy transition with US$72 million loan for Mohmand Multipurpose Dam
OPEC Fund supports Pakistan’s energy transition with US$72 million loan for Mohmand Multipurpose Dam
The OPEC Fund for International Development (the OPEC Fund) is extending a US$ 72 million loan in support of the Mohmand Multipurpose Dam Project, a major hydropower complex that will contribute to Pakistan’s energy security, increase sustainable water supply for agriculture and human consumption and improve resilience to floods.
While boosting Pakistan’s capacity to produce clean, renewable energy, the dam will also contribute to the regional socio-economic development of the Khyber Pakhtunkhwa province, Pakistan’s third largest region, where nearly 80 percent of the population lives in rural areas.
HE Aftab Ahmad Khokher, Ambassador of Pakistan to Austria, and OPEC Fund Director-General Dr. Abdulhamid Alkhalifa signed the loan agreement in Vienna today. Dr. Alkhalifa said: “We are proud of our strong and over 40-year cooperation with Pakistan. The Mohmand Multipurpose Dam is a landmark project for Pakistan and is critical to a number of the country’s strategic national priorities. It will help to tap Pakistan’s huge hydropower potential, boost agricultural production and strengthen local communities’ environmental resilience.”
The Mohmand Multipurpose Dam Project aligns with the national priorities of Pakistan Vision 2025 development strategy. Total project cost is US$2.2 billion and will be co-financed with the Islamic Development Bank, the Kuwait Fund for Arab Economic Development and the Saudi Fund for Development, while the government of Pakistan is contributing close to a US$ 1 billion through its own resources and proceeds from a Green Eurobond issued last year.
Upon completion the plant will add 800 MW capacity to Pakistan’s installed hydro power capacity and generate nearly 2,8 GWh electricity per year. The reservoir will have a storage capacity of 1,594 million cubic metres and provide potable water to Peshawar city, the region’s capital.
The OPEC Fund has partnered with Pakistan since 1976 and to date provided US$ 925 million financing in public and private sector loans, trade finance and grants funding to support over 65 operations in energy generation, industry, transport & storage, education, water supply & sewerage and multiple sectors.
About the OPEC Fund
The OPEC Fund for International Development (the OPEC Fund) is the only globally mandated development institution that provides financing from member countries to non-member countries exclusively. The organization works in cooperation with developing country partners and the international development community to stimulate economic growth and social progress in low- and middle-income countries around the world. The OPEC Fund was established by the member countries of OPEC in 1976 with a distinct purpose: to drive development, strengthen communities and empower people. Our work is people-centered, focusing on financing projects that meet essential needs, such as food, energy, infrastructure, employment (particularly relating to MSMEs), clean water and sanitation, healthcare and education. To date, the OPEC Fund has committed more than US$22 billion to development projects in over 125 countries with an estimated total project cost of US$187 billion.
The OPEC Fund is rated AA+/Outlook Stable by Fitch and AA/A-1+, Positive Outlook by S&P in 2021. Our vision is a world where sustainable development is a reality for all.