MVR 174 million loan obtained for development of water and sewerage system in Fuvahmulah

Kuwait Fund has granted a loan worth $11.3 million (MVR 174.36 million) for the establishment of a water and sewerage system in Fuvahmulah.

The agreement was signed by Minister of Finance Abdulla Jihad and Deputy Director General of Kuwait Fund Hisham Al Wagayan at a ceremony held at Finance Ministry today.

Speaking at the ceremony, Minister of Finance Abdulla Jihad said that the loan granted by Kuwait Fund is a soft loan with an interest rate of 2 percent, administrative charge of 5 percent, and repayment period of 24 years.

Minister of Environment Thorig Ibrahim said that the Fuvahmulah water and sewerage system project is worth $15 million, and that the government will spend $3.2 million on the project.

He said that efforts are under way to find a design consultant, and design work will be completed within six months.

Thorig said that the project will be implemented within six months and completed in 2016.

He said that Kuwait Fund has also been requested for a loan to cover half of a project worth $26 million, to take measures against erosion in Fuvahmulah.