The Maldivian government on Sunday signed a USD 50 million loan assistance agreement with the Asian Development Bank (ADB) for the Energy Security Emergency Assistance Project granted to Maldives by the bank.
In a post made on social media, the Ministry of Finance stated that official agreements for the USD 50 million "Energy Security Emergency Assistance Project" were signed today between the Maldivian government and the ADB.
Finance Minister Hassan Zareer signed the loan assistance agreement on behalf of the government. Regional Head of the Regional Cooperation and Integration Unit under ADB's South Asia Department, Dr. Thiam Hee Ng, signed on behalf of the ADB.
Managing Director Shimad Ibrahim signed the project agreement on behalf of STO.
The Ministry of Finance stated that the project conducted under this loan assistance is being carried out to support the government in responding to rising energy prices in the global market due to the ongoing war in the Middle East.
ADB previously stated that the loan is being granted under the Energy Security Emergency Assistance Project, which is implemented to assist fuel imports and ensure electricity and water security.
Due to the war in the Middle East, rising fuel prices and a decline in tourist arrivals to the Maldives have presented the government with difficulties in managing fuel-related expenses.
In the Maldives, 94 percent of electricity is generated from fuel.
In addition to the Maldives, ADB has also decided to grant a USD 750 million loan assistance to the Philippines. That assistance is being provided to support the country's Build Universal Health Care Program.
ADB has been granting loans to support key development projects in Maldives. The institution most recently provided assistance in 2024 for the Enhancing Climate Resilience and Food Security Project. A USD 4 million loan assistance was granted for that project.
Prior to that, in 2023, a loan of USD 18 million was issued for another energy-related project. Furthermore, a loan assistance of USD 45 million was also granted in 2020 for a sustainable energy production program.
So far this year, the government has taken a USD 40 million loan from the OPEC Fund for International Development (OFID) and a USD 40 million loan from the International Development Association.
