By Abdul Ghani

The Water and Power Development Authority (WAPDA) has sought an extension of the Islamic Development Bank (IsDB) financing facility for the Mohmand Dam Hydropower Project until April 2027, as construction continues to focus on key infrastructure components, according to a document available with Wealth Pakistan.

The document shows that IsDB approved a $180 million loan for the flagship hydropower project, with the financing agreement signed on March 21, 2022. The project is currently scheduled for completion by May 13, 2027.

Disbursements under the loan have reached $23.49 million, while construction activities remain focused on key infrastructure components.

According to the document, Lot-02 civil works remain on the project's critical path, with utilisation of IsDB and OPEC Fund financing earmarked for Lot-04 directly linked to the completion and advancement of Lot-02 works.

The latest status update indicates that the deadline for Tranche-II financing expired in September 2025, prompting WAPDA to request its extension until April 10, 2027.

IsDB has sought updates from the Ministry of Water Resources and WAPDA on the project's physical and financial progress, the disbursement status under Tranche-I, fulfilment of Tranche-II conditions, land acquisition, and delivery plans for electromechanical equipment.

The lender has also requested a revised project schedule detailing the impact of the 2022 floods, geological challenges encountered during implementation, updated milestones, and the likely implications of delays on project completion and loan-closing timelines.

The document further notes that disbursement of IsDB and OPEC financing is expected upon the completion of the critical Lot-02 civil works.

Mohmand Dam is among Pakistan's most significant water and energy infrastructure projects, expected to strengthen water storage capacity, generate clean electricity, support irrigation needs, and enhance flood protection in the region. The latest request for financing extension underscores the importance of maintaining funding continuity as the project moves toward its revised completion schedule.

Credit: INP-WealthPk