The proposal of the EAD stated that during the upcoming visit of the Saudi Crown Prince, the SFD has indicated its intention to enter into an agreement with EAD for extending financing of SR 1207.50 million for five hydropower projects.
The SDF will provide SAR 131.25 million financing for Jagran Hydropower Project-IV, SAR 153.75 million for Jamshoro Power Generation Project, SAR 247.5 million for Shounter Hydro Power Project, SAR 375 million for Diamer-Bhasha Dam Project, and SAR 300 million for Mohmand Dam Hydro Power Project, with total amount in Saudi Arabia Riyals 1207.50 million ($322 million), the sources stated.
The proposal further stated that the Executive Committee of the National Economic Council (ECNEC) has already given approval for the projects - Diamer-Bhasha Dam project, Mohmand Dam Hydro Power and Jamshoro Coal Power project - whereas Planning, Development and Reform Division has given concept clearance of Shounter Hydro Power and Jagran Hydro Power projects with an advice to EAD to seek financing from potential donors.
The EAD approached Saudi Fund for Development for financing of these projects and highlighted that stand-alone financing agreements for each of the projects will be entered after negotiations between the parties on financing modalities, including the rate of interest. The EAD added that normally, financing from SFD is long term. The MoU has been seen by law & Justice Division and also cleared by Finance Division. Approval of the Cabinet is solicited for signing the MoU with Saudi Fund for Development (SFD) on power sector projects.