Saudi Arabia: The Saudi Fund for Development has signed agreements to finance two hydropower projects in Azad Jammu and Kashmir, Pakistani state media reported on Sunday.

An SFD delegation, led by CEO Sultan bin Abdulrahman Al-Marshad, visited Azad Kashmir and signed the agreements to fund the Shounter and Jagran-4 hydropower projects.

The two projects will add 70 megawatts to the national grid in hydropower generation.

“The Shounter hydro project will generate 48 megawatts of electricity at a cost of $66 million, while the Jagran-4 hydro project will be completed at a cost of $41 million and will generate 22 MW of electricity,” the state-run Radio Pakistan broadcaster reported.

Pakistan’s Special Investment Facilitation Council, which was established in June to attract foreign direct investment, played a key role in the execution of these agreements, according to the report.

The SFD, a Saudi government agency, provides development assistance and financial aid to developing countries through loans and grants. In the past, the Fund has deposited money in Pakistan’s central bank to bolster foreign exchange reserves and funded various development projects in infrastructure, education, and health care.

Pakistani and SFD officials have recently held discussions to collaborate on a number of projects in the fields of energy, health, education and infrastructure, a top Pakistan official said last week.

“We already had a framework agreement with SFD. We have discussed a pipeline of numerous projects for future cooperation, in which they have shown keen interest,” Dr. Kazim Niaz, Pakistan’s economic affairs division secretary, told Arab News.

“These projects are in the energy, health, education and infrastructure sectors.”

Niaz did not provide more details on the projects, which he said would be shared after Saudi feedback on a list of initiatives shared by Islamabad for investment and cooperation.