The state has taken a loan of USD 11 million (Kuwait Dinar 3.6 million) from the Kuwait Fund for a project to project the distinctive natural beauty of the beach at Fuvahmulah City.
The government estimates USD 22 million (MVR 339 million) to be spend for the project: half of which would be taken as a loan from the Kuwait Fund.
After acquiring the loan, the Ministry of Finance and Treasury has submitted the information on the project to the parliament and the members on the Economic Committee of the parliament.
According to the details of the project shared with the MPs, the loan has to be repaid in 25 years and has an interest rate of 1.5 percent.
Fuvahmulah faces extreme soil erosion with no natural sea wall and the tides wearing away at the beach.
Finance Ministry has noted that the huge project of MVR 339 million comes in an effort to protect farmers from being affected and to protect the delicate environment of the island.
Since Fuvahmulah is an attractive city for trade and investments, for it's future, a solution to the problem must be found according to the Ministry in the documents sent to parliament.