Kuwait Fund lends Pakistan $24 million for hydropower project
The Kuwait Fund for Economic Development (KFED) is providing a loan of KD 7.5 million (approximately $24 million) to finance the Mohmand Hydropower Project in Pakistan.
• The loan will be repaid over 25 years, with a 5-year grace period.
• This is KFED’s 19th loan to Pakistan.
The Kuwait Fund for Economic Development (KFED) signed a loan agreement with Pakistan to provide KD 7.5 million (approximately $24 million) to finance the Mohmand Hydropower Project in Pakistan.
Al-Anba reports that H.E. Malik Farooq, Ambassador of the Islamic Republic of Pakistan to Kuwait, signed the agreement on behalf of Pakistan, yesterday. Waleed Al-Bahar, Acting Director General of KFED, signed for the Kuwait Fund for Economic Development.
The project aims to support Pakistan’s economic and social development. It will use available water resources to generate low-cost electricity to meet the growing demand. Additionally, the project will:
- Protect populated areas near the Swat River from seasonal floods.
- Provide water for various uses, especially irrigation and drinking water, in Khyber Pakhtunkhwa Province.
- Create job opportunities.
The project is expected to contribute to achieving the Sustainable Development Goals.
The loan has a term of 25 years, including a 5-year grace period. The loan will be repaid in 40 semi-annual installments,starting after the grace period ends. The interest rate on the loan is 2.0% per annum, with an additional 0.5% per annum for administration and loan implementation services.
This is the 19th loan that KFED has provided to Pakistan. KFED has previously provided Pakistan with 18 loans in various sectors, totaling approximately KD 129.7 million.
