The Maldives government Monday signed the loan agreement of US$ 400 million provided by the Indian government for the development of the country’s second overwater bridge.
The loan agreement for the Greater Male’ Connectivity Project was signed at a special ceremony held at the Finance Ministry. Finance Minister Ibrahim Ameer signed the agreement on behalf of the Maldives while General Manager of India’s Exim Bank Nirmit Ved signed the agreement on behalf of India.
Speaking after signing the agreement, Minister Ameer thanked the Indian government and citizens for extending the loan to the Maldives. Highlighting other aid and support provided by the Indian government over the years, the minister lauded the country for being an age-old friend. However, no details regarding the loan or the project were mentioned by the minister.
“This is the largest such project to be undertaken in the Maldives to date. Maldives is currenly facing a very dire circumstance. The state revenue has declined by 50 percent, the GDP has fallen by 70 percent. This assistance [from India] will increase infrastructural projects in the Maldives. This will become an important investment in restarting the economy,” said the minister.
Giving additional details regarding the project, Indian Ambassador to the Maldives, Sanjay Sudhir said the loan is part of the US$ 500 million assistance previously pledged by the Indian government. Adding that an Indian company was chosen by the Maldivian government to fulfill the role of a consultant for the project, Sudhir said the information regarding the loan can be viewed on Exim Bank’s public domain. 65 percent of material necessary for the project will be imported from India, said Sudhir.
“The consultant’s detailed report will be examined by both the Maldives and Indian government. The final tender will be issued by the Maldives government,” he added.
While a moratorium between two to five years will be applicable on the loan, a 20 year period will be granted to the Maldives to complete repayment, said Sudhir.
The Indian government previously pledged to provide US$ 500 million for the development of the ThilaMale’ Bridge. While US$ 100 milion is a grant assistance, the remaining US$ 400 million is a loan.
