Saudi Arabia provides $80 million loan for Hulhumal

The government has signed an agreement with Saudi Arabia for an $80 million loan for the second phase of the Hulhumalé Development Project.

The agreement was signed at a ceremony at Ministry of Finance and Treasury today, by Minister of Finance of Maldives Abdulla Jihad and Vice Chairman of Saudi Fund for Development Yousef Al-Bassam.

Speaking at the ceremony, Jihad said that the loan, which is one of the biggest loans granted by a foreign country for a development project in the Maldives, is an example of the good relations between the two countries.

Providing details on the loan terms, Jihad said that it has a repayment period of 25 years, grace period of five years, and 2 percent interest.

Yousef Al-Bassam said that the second phase of the Hulhumalé Development Project would see the provision of housing to many Maldivians, and assured that Saudi Arabia would provide support for development projects in the Maldives in the future as well.

Managing Director of Housing Development Corporation (HDC) Ahmed Simon said that many projects are already under way in the reclaimed area in Hulhumalé under the second phase, and the loan provided by Saudi Arabia would help expedite these efforts.

He said that the loan would be used for four main projects, which are a 1,200-metre sheet piling project, a project to connect phases one and two by bridges, a project for establishing channels between the economic zone and phase two mainland, and two phase two harbour projects.

The ceremony was also attended by Minister of Fisheries and Agriculture Mohamed Shainee and other senior officials of the government.