Agreement signed for USD 400m line of credit from India

The government of Maldives has on Monday signed a Line of Credit Agreement for USD 400 million to fund the Greater Male Connectivity Project (GMCP), with the EXIM Bank of India.

While the agreement was signed between EXIM bank and the Ministry of Finance, the Indian government has committed a USD 100 million grant for the project.

A statement released by the Indian High Commission in Maldives recalled that India’s support for Greater Male’ Connectivity Project was announced during a virtual meeting between Maldives Foreign Minister Abdulla Shahid and India’s External Affairs Minister Dr. S. Jaishankar, back in August.

While the GMCP is a key pledge of incumbent President Ibrahim Mohamed Solih, it will be the single-largest connectivity and infrastructure project in the island nation; four islands are to be linked under this project.

The Greater Male’ Connectivity Project is a 6.7km bridge and causeway connecting capital Male’, Villimale’, Gulhifalhu and Thilafushi.

Providing more details of the project, the Indian High Commission said that the project will compose of three navigation bridges, and while the land that interchanges between Male’ and Villimale is to be “signalised junctions”, there are to be roundabouts in the other two islands. Bus terminals are to be established on each island as well.

Further, plans are to use renewable energy to reduce impact on climate, the project will use solar power for road lighting, navigation lighting, deck cell lighting, CCTV and lighting on sign gantry and architectural lighting, with solar panels to be installed on top of lamp posts.

While a team from EXIM bank is in Male’ to sign the agreement, they are also holding discussions with ministries and agencies that are involved in implementing the Line of Credit projects, as well as assessing the progress of the seven other mega infrastructure projects funded under the USD 800 million Line of Credit signed last year.

In September, the Indian government handed over USD 250 million to the Maldives, as budgetary support to mitigate the economic impact of the ongoing Covid-19 pandemic, making it the largest single donor assistance the island nation has received.

Foreign Minister Shahid said that the Greater Male’ Connectivity Project “well lead to greater possibilities” and described its as “a gateway to a more developed and economically resilient nation”.