The Government of Maldives and the Asian Development Bank (ADB) signed legal agreements for a USD 50 million Energy Security Emergency Assistance Project, aimed at supporting the Government amid elevated global energy prices driven by ongoing geopolitical developments in the Middle East.
The Loan Agreement was signed by Minister of Finance and Public Enterprises Hassan Zareer and Dr Thiam Hee Ng, Regional Head of the Regional Cooperation and Integration Unit at ADB’s South Asia Department.
The Project Agreement was signed by State Trading Organisation (STO) Managing Director and Chief Executive Officer Shimad Ibrahim and Dr Thiam Hee Ng.
According to the Finance Ministry, the project is intended to provide relief to the state budget at a time when rising global oil prices have increased the Government’s expenditure on fuel.
The USD 50 million facility forms part of the Government’s efforts to secure concessional financing from multilateral development banks. The ministry said such financing would also help maintain the sustainability of Government debt.
Government officials, STO and ADB attended the signing ceremony.