EU and Maldives has signed a US$ 50 million agreement to address the issues faced by the country’s electricity supply network.
Finance Minister Abdullah Jihad and European Investment Bank Loan Officer Rentaal signed the loan on behalf of their respective agencies. STELCO Managing Director Abdu Shukoor and Fenaka Corporation MD Mohamed Nimal signed the agreement as well.
The loan has an interest rate of 3.31 percent, payable in 15 years with a grace period of three years. The loan will be managed by ADB.
Speaking in the ceremony, Environment Minister’s State Minister Abdul Matheen said that a US$ 129 million fund has been secured for the generation of renewable energy sources in the country. He added that the Government will invest an additional US$ 14 million in to this fund.
Matheen further said that Climate Investment Fund had also invested US$ 30 million into the project as well. He added that the US$ 30 million had been distributed to World Bank and ADB, which the two bodies had decided to pass on to the initiative.
He noted that IDB had donated US$ 10 million, while Japanese Government had donated US$ 5.5 million.
“Japan aid will be used to generate 50 percent of Addu City electricity from renewable sources,” he said.
Under the initiative, the electricity networks of Male’ and Hulhumale’ will be connected, in addition to upgrading the power networks in the islands.
EU Investment Bank, Maldives signs US$50 mil energy loan
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