ISLAMABAD: Saudi Fund for Development (SFD) has signed two loan agreements of 107 million dollar with Pakistan to fund hydropower projects in Azad Jammu and Kashmir (AJK).
These agreements were sealed when an SFD delegation visited Islamabad where they met Federal Minister for Economic Affairs, Ahad Khan Cheema. The signing of the loan agreements was done by Dr Kazim Niaz, Secretary of the Economic Affairs Division, and Sultan Bin Abdul Rehman Al-Marshad, CEO of the SFD.
The financing involves 48-megawatt Shounter Hydropower Project with 66 million and 22-megawatt Jagran-IV Hydropower Project with 41 million. Both projects, according to an official statement by the Economic Affairs Division, are geared towards tapping the local hydropower potential of AJK, with the two projects adding up to 70 megawatts to the national electricity grid of Pakistan.
Besides meeting the energy demands of the country, the projects will also contribute immensely towards alleviating deforestation as the projects will provide electricity as an alternative source of energy to local communities, most of which are using firewood.
The statement also emphasized the socio-economic gains that will be experienced in the region such as the generation of job opportunities and the promotion of local development.
The signing ceremony was also attended by the Economic Affairs Minister who emphasized the significance of Saudi-Pakistan cooperation in the energy sector.
The Saudi Fund for Development is a governmental institution of the Kingdom of Saudi Arabia which funds the developing countries by offering them the financial help in the form of concessional loans and grants to promote the sustainable development.
