ADFD Extends AED22 Million Loan to Maldives
Abu Dhabi, 22 Jun 2015
Abu Dhabi-UAE: 22 June, 2015 – Abu Dhabi Fund for Development (ADFD) signed a loan agreement with the government of the Republic of Maldives, by which ADFD will finance AED22 million a project that will generate energy from waste.
<p>The loan agreement articulates ADFD’s priority to finance renewable energy in brotherly and friendly countries given the importance of this sector in accelerating economic development in developing countries.
<p>The agreement was signed by His Excellency Mohammed Saif Al Suwaidi, Director General of ADFD, and His Excellency Abdulla Jihad, the Minister of finance and treasury, Republic of Maldives.
<p>Aimed at contributing to the development of the Maldivian economy, the project will support the energy sector in the northern city of Addu, the second largest city after the capital Male.
<p>The project involves the installation of a power plant that will utilize waste in an eco-friendly manner to generate about 4 megawatts (MW) of energy from heat, meeting 18% of the city's electricity needs.
<p>In addition, it will help save about 1.9 million liters of diesel, while reducing 10% of the city’s total waste. The scope of work involves civil, electrical and mechanical works to operate the plant.
His Excellency Mohammed Saif Al Suwaidi, Director General of ADFD, said: “The UAE is working through ADFD to promote the widespread deployment of renewable energy towards achieving sustainable economic and social development in emerging economies. This loan agreement with the Government of Maldives will significantly contribute to meeting the electricity needs of large portions of the population of Addu city from clean sources.
<p>"Through its funding activities, ADFD seeks to support vital economic sectors including energy. As a key enabler of sustainable economic and social development, renewable energy delivers sizeable benefits for the economies of developing countries in an efficient and sustainable manner.
<p>Al Suwaidi added: “The project will also create hundreds of new jobs in energy and allied sectors. This will in turn help beneficiary countries diversify their economies and expand conventional energy sources.
The project is being funded as part of ADFD’s commitment to supporting renewable energy sector. In 2009, ADFD committed concessional financing of up to AED 1.285 billion (USD $350 million) over seven funding cycles for renewable energy projects in developing countries, AED 183 million for each cycle. The projects are selected from International Renewable Energy Agency (IRENA) member states.
<p>The waste-to-energy project was selected as part of the first loan cycle of the IRENA/ADFD Project Facility valued at AED150.6 million (USD $41 million). Announced at the end of 2013, this cycle is providing concessionary loans to six renewable energy projects in Ecuador, Maldives, Mali, Samoa Islands, Mauritania and Sierra Leone.
<p>The financed projects have a combined total capacity of 21MW and will bring reliable and sustainable power to rural communities that are currently lacking access to a modern energy grid. </p>
<p>The first and second cycles of ADFD/IRENA Project Facility provided US$98 million in loans to fund 11 projects in Ecuador, Maldives, Mali, Samoa Island, Mauritania (two projects), Sierra Leone, Argentina, Cuba, Iran, St. Vincent and the Grenadines.
<p>Commending the pioneering role of the UAE in supporting development projects in various countries, His Excellency Abdulla Jihad, the Minister of finance and treasury, Republic of Maldives, said: “ADFD’s active involvement in financing development projects has had a significant economic impact in improving the standard of living and quality of life in developing countries.
<p>He added: "The bilateral relations between the two countries have grown remarkably over the past years primarily due to the UAE’s continued support to the stability and development of the Maldives. We look forward to forging further economic cooperation and joint investments with the UAE for the wider benefit of the two countries.
<p>Since 1976, ADFD has been actively involved in the development of Maldives through supporting the efforts of Maldives’s government to promote economic and social development and address various development challenges. To this end, ADFD has funded 4 projects valued at over AED68.6 million in vital sectors to Maldives’s economy, including housing, communications, transport and energy.