The 2020 state budget has allocated MVR 1.2 billion for the establishment of water and sewerage systems in 143 islands.
While proposing the budget for the upcoming year to the parliament, the Minister of Finance, Ibrahim Ameer, stated that the administration aims to begin work on providing clean drinking water and adequate sewerage systems to every island of the country within the next two years.
While the 2020 budget has allocated MVR 146.8 million to for entirely new water and sewerage systems, the most expensive project is the Hulhumale Island Project (Phase II), with a total cost of MVR 201.5 million.
The Hulhumale Island Project also received funding of approximately USD 80 million from the Saudi Fund for Development, which was agreed upon by the two governments in 2018.
The upcoming budget predicts that sewerage system projects will have a total cost of MVR 144.3 million, most of which will finance the "Provision of Water supply, Sanitation and Solid Waste Management Project”. The project also received funding of USD 50 million from the OPEC Fund for Development (OFID) as agreed upon in 2015. The budget also includes an additional MVR 84.5 million for sewerage projects.
Furthermore, the budget anticipates a cost of MVR 45.1 million for the establishment of water supply systems around the country. This number includes the MVR 30.2million in aid from the Green Climate Fund, donated in response to climate change-induced water shortages in the Maldives.
Currently, MVR 1.3 billion has been budgeted for 136 clean water and sewerage projects for the ongoing year of 2019. This includes 32 sewerage projects in 11 islands for MVR 62.2 million, 36 water supply projects in 26 islands for MVR 93.4 million, and 68 water and sewerage projects in 63 islands for MVR 274.4 million.
While the governments plans to introduce water and sewerage systems in a total of 107 islands, work has begun on implementing these projects in four islands so far.
Projects for 33 islands have currently been contracted, whereas projects for 70 islands are still undergoing the tender process.
The State Budget 2020 has the biggest Public Sector Investment Programme (PSIP) seen in the country’s history.