Current News & Events
Signature of a Loan ِAgreement for financing of Fuvahmulah Eastern Coastal Protection Project In the Republic of Maldives
A Loan Agreement was signed today in Male between the Government of the Republic of Maldives and Kuwait Fund for Arab Economic Development (the Fund), whereby the Kuwait Fund shall extend a loan in the amount of Kuwaiti Dinars three million and six hundred thousand (KD.3,600,000/-) (i.e. equivalent to about US.$12.24 million) to participate in financing of Fuvahmulah Eastern Coastal Protection Project. It is worth mentioning that in extending its loans and developmental assistance, Kuwait Fund depends exclusively on its own resources.
The Loan Agreement was signed on behalf of the Republic of Maldives by His Excellency Mr. Ahmed Munawar, Minister of Finance and Treasury, whereas Mr. Hesham Al-Waqayan, Deputy Director-General of the Fund signed the Loan on behalf of the Fund. His Excellency Mr. Khalaf Bu Dhhair, Ambassador of the State of Kuwait to the Socialist Republic of Sri Lanka and in-charge of the Republic of Maldives and Mr. Waleed Al-Bahar, Regional Manager for East South Asian and Pacific Countries of Kuwait Fund attended the signing Ceremony.
The Project aims at supporting the economic and social development in the Republic of Maldives through improving the livelihood of the people in Fuvahmulah Island, as one of the main islands in the country, by protecting the eastern shore of the Island from the effect of the sea waves. The Project includes the construction of an offshore breakwater of about 2.8 meters high and about 3.0 km long located at 10-30 meters away from the shore. The project also includes sand nourishment works for the beach at the most affected areas, in addition to institutional support and the consultancy services for the design and supervision.
The total cost of the Project is estimated at about Rufyahs 375 million, equivalent to about Kuwaiti Dinars 7.2 million, or equivalent to about US$ 24.5 million, including contingencies and consultancy services for design and supervision of works. The Loan shall cover about 50% of the total costs of the Project.
The Loan is made for a term of 24 years, including a grace period of 4 years, and is to be amortized in 40 semi-annual installments, the first of which will be due on the first date on which interest or other charges on the Loan will fall due, in accordance with the Loan Agreement, after the elapse of the said grace period. The Loan bears an interest rate at 1.5% per annum, in addition to 0.5% per annum for meeting administrative costs and other expenses incurred in the implementation of the Loan Agreement.
By extending this loan, the Kuwait Fund will have provided 13 loans to the Republic of Maldives where Kuwait Fund previously provided 12 loans with a total amount of K.D.39. 5million, equivalent to about US$ 134.3 million, for financing projects in various sectors. In addition, Kuwait Fund made 8 technical assistances of a total amount of about K.D. 1.39 million equivalent to about US$ 4.69 million allocated for various purposes including the financing of technical and economic feasibility studies for certain projects. Kuwait Fund also administered one grant made by the Government of the State of Kuwait amounting in total about US$ 2 million from the Resources of Kuwait Goodwill Fund for the Promotion of Food Security in Islamic Countries.