The government has signed agreements with the Asian Development Bank (ADB) concerning a total of USD 75.5 million for the purpose of financing the "Accelerating Sustainable System Development Using Renewable Energy Project."
The agreement was signed between the government and ADK on Tuesday, December 12.
The agreement's total include USD 57 million in grants and the remaining USD 18.5 million in concessional loans.
The parties signed a total of seven agreements on Tuesday which are;
1. A grant agreement concerning an amount of USD 41,500,000 from ADB
2. A grant agreement concerning an amount of USD 6,200,000 from the Japan Fund for the Joint Crediting Mechanism
3. A grant agreement concerning an amount of USD 5,000,000 from the Clean Technology Fund
4. A grant agreement for an amount of USD 3,800,000 from the Asia Pacific Climate Finance Fund
5. A grant of USD 500,000 from the Climate Change Fund
6. A loan agreement worth USD 10,000,000 from the Clean Technology Fund
7. A loan agreement of USD 8,500,000 from ADB
The Minister of Finance, Dr. Mohamed Shafeeg, signed the agreements on behalf of the government, and Cindy Malvincini, the Deputy Director of ADB's South Asia Regional Department, signed on behalf of the bank.
According to the Ministry of Finance, the project will lead to an "increase in the share of renewable energy sources in power generation mix in the Maldives" and further support in increasing private sector investment in renewable energy.
Additionally, the project will also establish a liquidity support facility aimed at mitigating the risk of delays in the payment of electricity purchases.
The project aims to introduce new renewable energy technologies, such as ocean and air power, in at least two islands.
The ministry further said that the project will support the capacity building of the Ministry of Climate Change, Environment, and Energy, and Fenaka Corporation Limited.
The government envisions that the project would bolster efforts made towards the improvement of the overall regulation concerning the renewable energy sector in the Maldives.
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