The Islamic Development Bank (IsDB) has approved $252.5 million of funding for two vital projects in Pakistan, said a press release.
The projects mainly aim to support the country’s green agenda in the energy sector, as well as the ongoing efforts to counter the adverse impacts of the Covid-19 pandemic.
Chaired by IsDB President and Chairman of the Board, Dr Muhammad Al Jasser, the 343rd meeting of the Board of Executive Directors of the Bank, on 18 December 2021, gave the green light to the allocation of $180 million to contribute to financing of the strategic “Mohmand Dam and Hydropower Project” in Khyber-Pakhtunkhwa (KP).
Once completed, Mohmand Dam will be the 5th highest Concrete-Face-Rock-Filled Dam (CFRFD) in the world and will add 800MW to the country’s installed hydropower capacity.
It will also provide sustainable clean potable water to two million residents in Peshawar city while boosting food security through vital support for irrigation and agricultural activities on 6,773 ha of new farmlands.
“It is my pleasure to announce that, yesterday, 18 December, the Board of Executive Directors of the Bank approved a US$ 180 million financing to contribute to this strategic, multi-purpose, green, renewable energy project,” IsDB President Dr Muhammad Al Jasser stated.
“We take pride in working alongside our partners from the Arab Coordination Group, as well as, other partners to see this great green project launched in due time. This is a testimony to the continuity of the strong partnership between IsDB and Government of Pakistan, in alignment with the country’s priorities and our own commitments to allocate more funding to climate-friendly projects.”
To date, Pakistan’s energy sector has received the largest share of IsDB Group development interventions by absorbing 68.4% (about US$ 9.3 billion) of the Group’s investments.
Meantime, in a separate development on 13th December 2021, the Islamic Development Bank also approved US$ 72.5 million of funding to support Pakistan’s nationwide vaccination efforts in the face of the ongoing COVID-19 pandemic.
Under this approval, the country’s “IVAC COVID-19 Vaccine Support Project” – also co-funded by the World Bank and the Asian Development Bank - will receive US$ 70 million from IsDB, as well as, US$ 2.5 million from IsDB’s Islamic Solidarity Fund for Development (ISFD).
The funding will contribute to Pakistan’s Government’s efforts to vaccinate 70% of the population eligible for vaccination aged 18 years and above, including healthcare and frontline workers and other priority groups.
This comes in the framework of the second track (R2) of IsDB Group’s US$ 4.56 billion Strategic Preparedness and Response Program (SPRP), specifically designed to support member countries with their health and economic recovery programs against the COVID-19 pandemic. Pakistan is a founding member of the IsDB and the 3rd largest beneficiary of IsDB Group financing. The development cooperation between the two parties goes back to 1970s when the first development operation in Pakistan was approved on 05 June 1977.
The story was originally published in Business Recorder on December 21, 2021.
