Sovereign guarantee provided for road development project in Hulhumale'

Hulhumale' phase 2. (Photo/HDC)

The government of the Maldives has provided a sovereign guarantee for a loan of USD 19.25 million (MVR 296.83 million) obtained from the Exim Bank of India to develop the remaining roads of Hulhumale’.

The Parliament’s Committee on Public Accounts today was briefed by the Finance Ministry on state loans. An agreement was signed by the Housing Development Corporation (HDC) with the Exim Bank of India to develop the roads of Hulhumale’ on August 27, 2020, according to Committee chair and Kinbidhoo MP Mohamed Nashiz. 

The state provided a sovereign guarantee to the loan in October 2020. The project is to be financed 100 percent by the Exim Bank.

The first phase of the road development in Hulhumale’ phase 2 was also awarded to the Mohan Ashoka Buildcon LLP of India. The second phase of the project will also be carried out by an Indian company. 

A sovereign guarantee is now being sought by the Fahi Dhiriulhun Corporation for another project in Hulhumale’ phase 2.