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Maldives signs USD 50 mln loan agreement with OPEC

Nafaahath Ibrahim
16 January 2020, MVT 19:23
FINANCE MINISTRY FINANCE MINISTER IBRAHIM AMEER / OPEC LOAN SIGNING CEREMONY
Nafaahath Ibrahim
16 January 2020, MVT 19:23

Maldives on Thursday signed a USD 50 million loan agreement with the Organization of the Petroleum Exporting Countries (OPEC) Fund for International Development.

During a special ceremony held at Hotel Jen in capital city Male', Minister of Finance Ibrahim Ameer and OPEC Fund’s Director-General Dr Abdulhamid Al Khalifa signed the agreement.

The funds will be utilized to finance nine harbour projects, and water and sewerage projects in eight islands.

Habour Projects:

- Baa Atoll Kudarikilu

- Baa Atoll Dhonfanu

- Baa Atoll Kihaadhoo

- Gaaf Dhaalu Hoadedhdhoo

- Gaaf Alif Kolamaafushi

Water and Sewerage Projects:

- Haa Dhaalu Nellaidhoo

- Haa Dhaalu Neykurendhoo

- Haa Dhaalu Makunudhoo

- Shaviyani Feydhoo

- Gaaf Dhaalu Vaadhoo

- Gaaf Dhaalu Fiyoaree

- Baa Kendhoo

The loan has a 4.6 percent interest rate and a repayment period of 20 years.

Speaking to the press after the ceremony, Minister Ameer stated that repayment will commence after five years.

He noted that these projects will benefit over 20,000 people.

Furthermore, the Minister highlighted that these projects are already included in the State Budget for 2020 and work is underway to start the bidding process.

Dr Al Khalifa said that Maldives is one of the countries that use OPEC's financial assistance most effectively. Speaking in this regard, he stated that unlike some other countries, projects commence soon after the agreements are signed.

The main objective of OPEC is to reinforce financial cooperation between OPEC member countries and other developing countries, and provide financial support for their socio-economic development.

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