OPEC Fund supports Pakistan’s energy transition with $72mln loan

OPEC Fund supports Pakistan’s energy transition with $72mln loan

VIENNA: 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.

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