The Asian Development Bank (ADB) has approved a USD 50 million loan to the Maldives as emergency assistance.
ADB said the loan will support the "Energy Security Emergency Assistance Project", which aims to strengthen the Maldives’ energy security. The loan will help facilitate the import of fuel and ensure reliable electricity and water services in the country.
ADB President Masato Kanda said the impact of a war should not be allowed to reach the daily lives of families or disrupt a country’s borders. He noted that the effects of such conflicts can be seen in the prices of essential goods and in the extent to which households receive uninterrupted electricity services.
Kanda further said that although ongoing conflicts around the world have driven up the prices of goods, ADB is working to aid in reliable electricity and water services for the people of the Maldives.
Around 94 percent of electricity generation in the Maldives relies on imported fuel, while desalination plants also depend on fuel to operate. Therefore, the country has limited alternatives if access to fuel becomes difficult.
The assistance provided through the ADB loan will facilitate the import of diesel needed to ensure uninterrupted electricity and water services, transport food and medical supplies, move people and goods between islands, and provide waste management services.
In addition to the ADB assistance, the World Bank has also provided USD 40 million in support for the same purpose.