Maldives signs USD 50 million loan agreement with OPEC Fund

Maldives has signed a USD 50 million loan agreement with the OPEC Fund for International Development to finance harbor, water supply and sewerage projects in local islands.

The loan agreement was signed by Finance Minister Ibrahim Ameer and OPEC Fund’s Director-General Dr. Abdulhamid Alkhalifa.

The USD 50 million loan has an interest rate of 4.6 percent, a grace period of five years, and a payback period of 20 years.

It will finance harbor projects in five islands, and water and sewerage projects in eight islands.

According to Finance Minister Ameer, the project will directly benefit 20,000 people who reside in the 13 islands.

HARBOR PROJECTS:

• B. Kudarikilu
• B. Dhonfanu
• B. Kihaadhoo
• G. Dh. Hoadedhdhoo
• G. A. Kolamaafushi

WATER AND SEWERAGE PROJECTS:

• H. Dh. Nellaidhoo
• H. Dh. Neykurendhoo
• H. Dh. Makunudhoo
• Sh. Feydhoo
• G. Dh. Vaadhoo
• G. Dh. Fiyoaree
• B. Kendhoo

SEWERAGE PROJECT:

• B. Dharavandhoo

The projects had already been listed on the 2020 budget under planned infrastructure development projects.

Following the signing of the loan agreement, Minister Ameer described the OPEC Fund as a valuable development partner for Maldives with significant contributions to infrastructure development, chiefly the establishment of water and sewerage networks.

He also noted the OPEC Fund’s significant financial contribution towards the mega Velana International Airport development project.

The OPEC Fund has released USD 200 million on 23 projects in Maldives.