An agreement has been signed with Organization of the Petroleum Exporting Countries (OPEC) for loan of USD 50 million from the from OPEC Fund for International Development (OPEC Fund) to develop water and sewerage systems in eight islands in the Maldives

The agreement was signed at a special ceremony held at Hotel Jen today by the Minister of Finance and Treasury, Ibrahim Ameer and the Director General of OPEC Fund, Dr. Abdulhamid Al-Khalifa.

At the ceremony, Finance Minister, Ibrahim Ameer said that aside from developing water and sewerage systems, the funds are also going to be used to rehabilitate harbors in five islands which in turn is going to benefit to 20,000 people.

Water and Sewerage Projects are going to be developed at the following islands:

  • Haa Dhaalu Atoll Nellaidhoo Haa Dhaalu Atoll Neykurendhoo Haa Dhaalu Atoll Makunudhoo Shaviyani Atoll Feydhoo Gaafu Dhaalu Atoll Vaadhoo Gaafu Dhaalu Atoll Fiyori Baa Atoll Kendhoo

Harbor renovation projects are going to be at the following islands:

  • Baa Atoll Kudarikilu
  • Baa Atoll Dhonfanu
  • Baa Atoll Kihaadhoo
  • Gaafu Alifu Kolamaafushi
  • Gaafu Alifu Hoandehdhoo

The Finance Minister said that the tendering work for the projects are already underway and the constructions will begin very soon.

The USD 50 million loan from OPEC comes with an interest of 4.6 percent and is set to be repaid in 20 years according to Minister Ameer. And a five-year grace period for the repayment have been arranged in case of failing to repay the loan in 20 years.

Minister Ameer also said that the loan figure was included in the annual budget this year and so would not increase the state debt with the acquisition of the loan.

OPEC Fund has made major contributions to the development in the Maldives since 1976.

At the signing ceremony today, the Director General of the OPEC Fund said that OPEC will support in the development of the Maldives in the future as well.

While the Finance Minister assured that there is no danger of failing to repay the loan, the OPEC Fund Director General said that the Maldives have always repaid the OPEC loans within the allocated period.