Maldives government Sunday signed an agreement with OPEC Fund for International Development (OFID) to secure USD50 million to fund the ongoing project to develop the archipelago's main airport.
After signing the agreement, finance minister Ahmed Munawwar told Avas that the government would need to repay the loan in fourteen years with a four year grace period.
The government would use the funds to build a new terminal at the Ibrahim Nasir International Airport (INIA), the minister added.
OFID had decided to grant the loan its Governing Board’s 156th meeting in Australia in September.
OFID had approved grants of total USD300 million to 22 states at the meeting, with the Maldives included among the countries to receive one of the largest loans.
OFID had said the development of INIA will have major positive impacts on the island nation’s economy and tourism. With the expansion, INIA will be able to cater 7.5 million passengers per year in addition to creating more jobs.
The development of INIA into a state-of-the-art airport was awarded to Saudi Arabian firm Saudi Binladen Group. The project is estimated to cost total USD 800 million.
The airport’s new runway, fuel farm and cargo storage are being developed by China’s Beijing Urban Construction Group (BUCG). The Export-Import Bank of China (EXIM) had granted the Maldives USD 373 million for the project.
The first phase of INIA development is to be completed in 2018.
