Asian Development Bank (ADB) granted USD 11 million to Maldives in order to implement high tech systems needed for cross border control.
An official agreement regarding the matter will be signed during the ongoing Maldives Partnership Forum
Senior Economist at ADB Masato Nakane, declared that the establishment of a high tech system would reduce the time consumed to clear goods, resulting in lower prices.
It is envisioned that the project will facilitate the expansion of business opportunities in Maldives and enhance commercial relations with neighbouring India and Sri Lanka.
Out of the total USD 11.99 million to be spent on the project, the government will cover USD 1.99 million. The project is estimated to be completed in 2023.
The grant provided by ADB consists of a low-interest loan for USD 5 million and USD 5 million of free financial aid.
Similar to other island nations, Maldives imports great quantities of food, oil and other commodities. Maldives' main export is raw fish and its products. Despite increases in exports during recent years, the cost of conducting international trade remains high.
Regionally, Maldives racks the highest cost for exporting and importing goods.
ADB has decided to provide a total of USD 31 million to Maldives for 2019 and 2020.