OPEC Fund for International Development (OFID) has granted a loan of USD 50 million to develop water and sewerage facilities in 8 islands and construct harbours in 5 islands.
The loan agreement was signed at a ceremony held at Hotel Jen by Minister of Finance Ibrahim Ameer and Director General of OFID Dr. Abdul Hamid Al Khalif. The loan was issued with an interest rate of 4.6% which must be paid back within 20 years. OFID also provided Maldives a grace period of 5 years to repay the loan.
Under the loan aid, harbours will be constructed in Dhonfanu, Kudarikilu and Kihaadhoo in Baa Atoll, in addition to Kolamaafushi and Hoadehdhoo in Gaafu Alifu Atoll. Moreover, water and sewerage facilities will be developed in Dharavandhoo and Kendhoo in Baa Atoll, Feydhoo in Shaviyani Atoll, Neykurendhoo, Nellaidhoo and Makunudhoo in Haa Dhaalu Atoll, in addition to Vaadhoo and Fiyoari in Gaafu Dhaalu Atoll.
The finance ministry stated the situation of the islands will be assessed before launching the projects.