A Loan Agreement was signed today in the Republic of Maldives between the Government of the Republic of Maldives and the Kuwait Fund for Arab Economic Development, whereby the Kuwait Fund will provide a loan to Maldives in the amount of Kuwaiti Dinars 3 million (equivalent to about U.S. 9.700 $ million) for the financing of the Small Islands Hospitals Project.

The Loan Agreement was signed by His Excellency Mr. Mohammad Shafeeq, Minister Finance on behalf of the Republic of Maldives, whereas Mr. Waleed Al-Bahar, Acting Director-General of Kuwait Fund for Arab Economic Development signed the Loan Agreement on behalf of the Fund.

The Project aims to support the economic and social development in the Republic of Maldives city by providing necessary health services and enhances their efficiency in seven small islands located in the north and south of the country. the project also contributes to reducing the cost of transport among the served islands to obtain the necessary health services, decentralize healthcare services to the population of islands’ catchment areas and tourists to deliver secondary medical care at the right time. The project is expected to contribute to the achievement of sustainable development goals, including: the first (No Poverty), the third (good health and well-being), the fifth (gender equality), the tenth (Reduce inequality), and the seventeenth (partnerships for the goals).

                       The project consists mainly of the civil and electromechanical works, which includes development seven small hospitals on seven small islands located in the north and south of the country, the Islands are HDH. HANIMAADHOO, N. VELIDHOO, ADH. MAAMIGILI, V.FELIDHOO, TH.VILUFUSHI, SH.MILANDHOO and K.THULUSDHOO. The project also includes, civil works, electro-technical works of the hospital buildings and services, provision of medical equipment and furniture, engineering services for preparing designs and tender documents and supervision of construction, and project implementation unit. The project the project is expected to be completed by 30/06/2027.

                        The total cost of the Project is estimated at about 1330 Maldivian Rufiyaa, equivalent to approximately 26.17 million Kuwaiti dinars. The Kuwait fund’s loan of 3 million Kuwaiti dinars covers about 11.5% of the project costs, while the Maldivian government will cover the remaining costs or any other increase that may occur in the project costs.

                        The Loan is made for a term of 24 years, including a period of grace of about 4 years, and will be amortized by 40 semi-annual installments, the first of which will be due on the first date on which or any interest or other charges on the loan shall fall due after the elapse of the grace period. Loan will bear interest at 1 % per annum in addition to a charge of 0.5% for meeting administrative costs and the expenses of implementation of the Loan Agreement.

                        The Fund loan represents the fifteenth loan provided by the Fund to the Republic of Maldives, as the Fund had previously provided fourteenth loans to Maldives, in various sectors, totaling approximately 58.1 million Kuwaiti dinars. The Fund also provided nine grants and technical aid to Maldives, totaling approximately 1.09 million Kuwaiti dinars.