Maldives has recently finalised agreements amounting to USD 75 million with the Asian Development Bank (ADB) to support the development of sustainable renewable energy systems.
The Ministry of Finance disclosed that these agreements comprise USD 57 million in grants and USD 18.5 million in loans. The seven agreements cover:
- A grant agreement of USD 41,500,000 from ADB
- A grant agreement of USD 6,200,000 from the Japan Fund for the Joint Crediting Mechanism
- A grant agreement of USD 5,000,000 from the Clean Technology Fund
- A grant agreement of USD 3,800,000 from the Asia Pacific Climate Finance Fund
- A grant agreement of USD 500,000 from the Climate Change Fund
- A loan agreement of USD 10,000,000 from the Clean Technology Fund
- A loan agreement of USD 8,500,000 from ADB
Finance Minister Dr Mohamed Shafeeq, representing the Maldivian government, and Cindy Malvicini, Deputy Director of ADB’s South Asia Regional Department, signed these agreements.
The Ministry of Finance stated that the funds will establish a liquidity support facility, encouraging private sector investment in renewable energy. Additionally, the project aims to address potential delays in payments for electricity purchases from Fenaka, the national utility provider. The financial support will also facilitate the introduction of renewable energy technologies, such as offshore and wind energy, on at least two islands.
Furthermore, the initiative includes enhancing the Environment Ministry and Fenaka’s capacities and strengthening regulations related to renewable energy. The project will also involve testing and promoting agricultural technologies.