The World Bank’s Board of Executive Directors has approved a USD10 million grant to support technology-based development of the Maldives.
As per the press release issued by the World Bank on June 2, the grant is being provided for the Digital Maldives for Adaptation, Decentralisation and Diversification Project, which will support the government in strengthening the legal, regulatory and institutional frameworks for broadband internet connectivity and infrastructure, data governance, and the digital economy. This will include boosting the capacity of the Communication Authority of Maldives (CAM) and the National Centre for Information Technology (NCIT) to improve internet connectivity for people, businesses, and government across islands.
The project will also enable the modernisation of the foundational ID system of the Maldives. This would facilitate trusted transactions online and offline to improve service delivery across a range of services such as finance, health, and social protection. Furthermore, a state-of-the-art climate data platform will be established to advance climate-relevant data sharing and analysis and to enhance data-driven planning and policymaking for climate adaptation and resilience.
The World Bank noted internet access and use in the Maldives has expanded over the past decade, but challenges remain in terms of the affordability and quality of Internet services, particularly in the outer atolls. The World Bank stated gaps in the enabling legislative environment, as well as in digital infrastructure and platforms, make it harder for Maldivians to get online and access a wide range of public- and private-sector services in a secure manner. The bank stated the need for decentralisation and digital transformation is made more pressing by the effects of climate change such as sea-level rise and coastal erosion, which are having an impact on the main economic pillars of the country such as tourism and fisheries.
The World Bank Country Director for Maldives, Faris. H. Hadad-Zervos said the COVID-19 pandemic has accelerated the digital transition already underway in Maldives, contributing to the emergence of new digital platforms and applications like e-payment systems, telehealth, and online education. He noted while building on this momentum, the Maldives can unlock new opportunities for growth and new avenues for climate resilience to truly build back better.
The project will be implemented by the Ministry of Environment, Climate Change and Technology, in partnership with the Communication Authority of Maldives (CAM), National Centre for Information Technology (NCIT), and Department of National Registration (DNR). The total financing is USD10 million, which is fully covered under a grant from the International Development Association (IDA), the World Bank’s concessional credit window for developing countries.