SFD signs deals to support Pakistan’s clean energy sector

Saudi Fund for Development (SDF) has signed two development agreements with Islamic Republic of Pakistan Ministry of Economic Affairs Secretary Dr. Kazim Niaz to finance the establishment of the Shounter Hydropower and the Jagran-IV Hydropower Projects with development soft loans amounting to $66 million and $35 million, respectively.

The first agreement is intended to construct the Shounter Hydropower station with a capacity of 48 megawatts and connect it to Pakistan’s national electricity grid. The project involves dam construction, water diversion, purification structures, excavation of the main water transport tunnel, powerhouse and discharge tunnel construction, and equipment, devices, and transmission line supply.

Meanwhile, the second agreement was concluded to establish the Jagran-IV Hydropower Project with a capacity of 22 megawatts and connect it to Pakistan’s national grid of electricity.

The project entails the construction of a dam, powerhouse, water diversion, and purification building, as well as the provision of generators, transformers, necessary equipment, and transmission lines.

These two agreements mark a continuation of efforts to boost clean energy projects in Pakistan, addressing challenges posed by conventional energy and its associated financial costs.

Furthermore, they underscore the significance of clean energy and its contribution to fostering vital opportunities for sustainable development, aiming to support social development, stimulate economic growth, and meet the population’s basic needs.

Since 1976, the SFD has been supporting Pakistan by financing the implementation of 41 development projects and programs through development soft loans and generous grants totaling over $1.4 billion to support the growth of various vital sectors across Pakistani regions.