The Maldives on Sunday signed a US$100 million loan agreement with Saudi Arabia to part fund Ibrahim Nasir International Airport development project.
Under the agreement, the loan, which carries a payback period of 25 years and grace period of 5 years, will be provided through the Saudi Fund for Development at an interest rate of 2%.
Speaking at the ceremony held to sign the agreement, Finance Minister Ahmed Munawar said the loan would be utilised for the development of the new terminal at the airport.
Vice Chairman and Managing Director of Saudi Fund for Development, Yousuf al Bassam assured that they would continue helping the Maldives in infrastructure and economic development projects. He said the Saudi Fund for Development had provided US$266 million in soft loans to 12 different development projects around the country.
Ibrahim Nasir International Airport development project is one the biggest and most expensive development projects undertaken in the country.
According to the government, the multi-phased project will cost around US$800 million.
The project, which will expand the airport by 30 percent and create additional runway space, is expected to be completed in 2018.
Maldives Airports Company says a 3400-meter long 65-metre wide runway will be developed as part of the project, which is contracted to China’s Beijing Urban Construction Group, BUCG.
The project will also see development of a modern cargo complex at the airport.
The project to build the new passenger terminal at Ibrahim Nasir International Airport was commenced in May this year.
Saudi Bin Ladin Group, one of the biggest contracting companies in Saudi Arabia, is the contractor of the project.