Ayesha Saba

The Saudi Fund for Development (SFD) supported portfolio in Khyber Pakhtunkhwa is progressing across multiple sectors, with cumulative commitments reaching approximately $628.90 million and total disbursements standing at $221.87 million, according to the latest update contained in official documents available with Wealth Pakistan.

Among the flagship initiatives, the Golen Gol Hydropower Project (Chitral), executed by WAPDA with a committed amount of $97.8 million, has recorded disbursements of $95.12 million. The project faced cost escalations due to the 2019-20 floods and an increase in the revised PC-I cost. Financial reconciliation, including overpayment adjustments and audit observations, is in progress, while the remaining balance of approximately $2 million will be drawn following approval of the second revised PC-I and extension of the loan.

Similarly, the Mohmand Dam Hydropower Project, with a commitment of $240 million, has seen disbursements of $96.19 million. Overall physical progress at the project stands at 47.84 percent, with significant advancements in key components, including diversion tunnels at 96.05 percent, coffer dams at 100 percent, and quarry development at 64.11 percent, while work on the main dam rockfill stands at 5.34 percent. The project is expected to be completed in December 2028.

The Construction of Infrastructure in Malakand Region Project, which is a grant given to former Fata and the Khyber Pakhtunkhwa government, carries a loan value of $72 million. The project has achieved disbursements of $25.13 million. The project is set for completion in December 2027.

The Gravity Flow Water Supply Scheme for Mansehra, with a loan commitment of $41 million signed in February 2025, is in its initial phase with no disbursement yet recorded. Design submissions and procurement processes are underway, while land demarcation is in progress. The project completion date is December 2028.

In the health sector, the disbursements for the provision of Hayaserai Hospital with medical equipment under a $0.60 million grant remain pending due to price escalation requiring additional financing. Provincial Disaster Management Authority and Provincial Reconstruction, Rehabilitation and Settlement Authority have requested cost enhancement from $0.6 million to $1.75 million, and SFD’s response is awaited.

Meanwhile, the equipping and furnishing of King Abdullah Bin Abdul Aziz Hospital, Mansehra, under a $5.5 million grant, is 100 percent complete in terms of equipment delivery, with disbursements totalling $5.43 million. Clearance of the consultant’s pending financial liabilities remains under process, subject to SFD concurrence for extension of time.

A major upcoming initiative – the Construction of Muzaffarabad–Mansehra Road Project – valued at $172 million, is in the pipeline and yet to be signed.

The portfolio reflects steady implementation momentum despite financial, procedural and concurrence-related challenges. Authorities have expressed confidence that ongoing reviews and coordination with SFD will help resolve pending issues and further accelerate development outcomes across the province.

Credit: INP-WealthPk