ISLAMABAD, June 22: The Water and Power Development Authority has requested an extension of the Islamic Development Bank financing facility for the Mohmand Dam Hydropower Project until April 2027, as work continues on key construction components, according to a document available with Wealth Pakistan.

The request is linked to the project’s financing and construction schedule, with WAPDA seeking continuity of funds for one of Pakistan’s major water and energy infrastructure projects. The Mohmand Dam project is expected to support water storage, clean power generation, irrigation and flood protection.

According to the document, IsDB approved a $180 million loan for the project, while the financing agreement was signed on March 21, 2022. The project is currently scheduled for completion by May 13, 2027.

So far, disbursements under the loan have reached $23.49 million. Construction activities remain focused on major infrastructure works, particularly civil works that are critical to the project timeline.

The document shows that Lot-02 civil works are on the project’s critical path. It states that the use of IsDB and OPEC Fund financing earmarked for Lot-04 is directly linked to the completion and progress of Lot-02 works.

The latest project status indicates that the deadline for Tranche-II financing expired in September 2025. WAPDA has requested that the deadline be extended 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 of Tranche-I, fulfilment of Tranche-II conditions, land acquisition and delivery plans for electromechanical equipment.

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

According to the document, disbursement of IsDB and OPEC financing is expected after the completion of the critical Lot-02 civil works.

Mohmand Dam is regarded as a key project for Pakistan’s water and energy security. The latest request for an extension highlights the importance of maintaining financing continuity as the project moves toward its revised completion schedule.

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