MIFCO seeks nearly MVR 1 billion loan from IDB

State fisheries company, Maldives Industrial Fisheries Company (MIFCO), on Sunday, states they have applied for a USD 64.65 million loan from Islamic Development Bank (IDB), with support from the government.

According to MIFCO, the loan is being sought to strengthen fisheries infrastructure and sustainability. As such, MIFCO said the funding will enhance facilities, equipment, and expertise—driving industry growth.

There are seven components under the project:

1. Increasing cold storage through development of a 1,000MT Cold Storage with 50MT Brine Freezing at Ihavandhoo and a 500 MT Cold Storage with 50MT Brine Freezing at Addu Fisheries Complex
2. Enhancing fish processing capacity by upgrading the 35-metric-ton fish processing unit and power generation at Kanduoihgiri, along with constructing 250 staff accommodation units at Felivaru and 100 units at Kooddoo
3. Capacity development including training programs for MIFCO staff and stakeholders, sensitization of fishermen, developing a 10-year business plan, implementing an Enterprise Resource Planning (ERP) system and strengthening the fish value chin through Reverse Linkage with Indonesia for expert transfer
4. Project management support through consulting services for supervision, procurement and financial management along with recruiting a project management specialist to coordinate implantation
5. Financial audit of the project to be under by the Auditor General’s Office
6. A Contingency Emergency Response Component (CERC) to provide financial flexibility for disaster-related activities
7. A provision for price escalation and physical contingencies to address unforeseen cost increases during implementation

According to MIFCO, the procurement of contracts financed by IDB will be conducted through competitive bidding.

The state fisheries company is seeking a huge loan after it was recently revealed that 96 percent of the loans and grant assistance projected to be received in the state budget for this year has not been received.

Ruling PNC’s Central Hithadhoo MP Ahmed Azan, who previously sat in the Parliament’s Public Accounts Committee, said the government received MVR 300,000 in loans as of February 27^th, although MVR 664 million was projected.

Maldives’ alarming financial state has prompted two of the biggest international credit ranking agencies to downgrade its ranking.