The Saudi Fund for Development (SFD) has taken a significant step forward in promoting sustainable energy in Pakistan with the signing of two pivotal agreements. The CEO of SFD, Sultan Abdulrahman Al-Marshad, and Dr. Kazim Niaz, the Secretary of Pakistan’s Ministry of Economic Affairs, have inked deals that will pave the way for the creation of the Shounter and Jagran-IV Hydropower Projects, with a combined soft loan financing of $101 million.
The initial agreement dedicates $66 million to the Shounter Hydropower station, which upon completion will generate 48 megawatts of clean energy and integrate with Pakistan’s national electricity grid. This project is comprehensive, encompassing the construction of a dam, water diversion systems, a purification structure, and the excavation of a principal water transport tunnel. Additionally, it includes the building of a powerhouse, a discharge tunnel, and the procurement of necessary equipment and transmission lines.
In parallel, the second agreement allocates $35 million to the Jagran-IV Hydropower Project, capable of producing 22 megawatts once operational. Similar to the Shounter initiative, this project involves the construction of a dam and powerhouse, as well as water diversion and purification facilities. It also accounts for the supply of generators, transformers, and the requisite equipment and transmission lines to connect to the national grid.
These agreements represent a continuation of the SFD’s commitment to clean energy projects in Pakistan, which are essential in overcoming the challenges of traditional energy sources and their associated economic costs. They also highlight the importance of clean energy in creating valuable opportunities for sustainable development, supporting social progress, stimulating economic growth, and catering to the basic needs of the populace.
Since 1976, the SFD has been a staunch supporter of Pakistan’s development, financing 41 projects and programs through soft loans and grants, amassing over $1.4 billion. These funds have been instrumental in advancing critical sectors throughout various Pakistani regions.