Riyadh: The Saudi Fund for Development (SFD), represented by its CEO Sultan Abdulrahman Al-Marshad, signed today in Islamabad a development agreement with the fraternal Islamic Republic of Pakistan to finance the Mohmand Hydropower Dam Project through a soft development loan provided by the Kingdom of Saudi Arabia through the Fund at a value exceeding USD 240 million.

According to Saudi Press Agency, the project aims to enhance the supply of energy and water for agriculture and daily consumption, and protection from flood risks.

At the signing ceremony, the SFD was represented by its CEO Sultan Abdulrahman Al-Marshad, while the Pakistani side was represented by the Undersecretary of the Ministry of Economic Affairs, Dr. Kazim Niaz, in the presence of the Saudi Ambassador to Pakistan, Nawaf bin Saeed Al-Malki, and several officials from both sides.

By financing this project, the SFD seeks to enhance Pakistan's ability to produce clean and renewable energy, by increasing the production capacity of electricity to generate (800) megawatts, in addition to storing about (1.6) million cubic meters of water to provide sustainable water sources for agriculture and human consumption.

The project will also enhance water and food security, irrigating more than 6,773 hectares of new agricultural land, increasing the current cropping area from 1,517 hectares to 9,227 hectares, and protecting the region from the impact of floods.