Maldives secures USD 75m in investments for renewable energy project

Maldives has signed agreements totaling USD 75 million with the Asian Development Bank (ADB) to develop sustainable renewable energy systems.

According to a statement from the Ministry of Finance, the agreements include USD 57 million in grants and USD 18.5 million in loans respectively. The seven agreements signed are: 

·       A grant agreement concerning an amount of USD 41,500,000 (United States Dollars Forty One Million Five Hundred Thousand) from ADB

·       A grant agreement concerning an amount of USD 6,200,000 (United States Dollars Six Million Two Hundred Thousand) from the Japan Fund for the Joint Crediting Mechanism

·       A grant agreement concerning an amount of USD 5,000,000 (United States Dollars Five Million) from the Clean Technology Fund

·       A grant agreement concerning an amount of USD 3,800,000 (United States Dollars Three Million Eight Hundred Thousand) from the Asia Pacific Climate Finance Fund

·       A grant agreement concerning an amount of USD 500,000 (United States Dollars Five Hundred Thousand) from the Climate Change Fund

·       A loan agreement concerning USD 10,000,000 (United States Dollars Ten Million) from the Clean Technology Fund

·       A loan agreement concerning an amount of USD 8,500,000 (United States Dollars Eight Million and Five Hundred Thousand) from ADB

The agreements were signed by Finance Minister Dr Mohamed Shafeeq on behalf of the government of Maldives while Deputy Director of ADB's South Asia. Regional Department Cindy Malvicini signed on behalf of the bank.

The finance ministry said the project would provide a liquidity support facility to encourage private sector investment in renewable energy and mitigate potential delays in payments for electricity purchases from Fenaka. The funds will also be used to introduce renewable energy technologies (offshore and wind energy) in at least two islands, enhance the capacity of the Environment Ministry and Fenaka and further strengthen regulation on renewable energy, the ministry said.

In addition to this, the project also plans to test and promote agricultural technologies, the finance ministry further said.