Kuwait Development Fund grants Maldives 3 million dinars to finance hospital construction
Loan agreement to finance the construction of a new hospital in the Maldives
Translated by Qiyas from الجريدة — Original source
The Kuwait Fund for Arab Economic Development signed a loan agreement with the Government of the Republic of Maldives today, Wednesday, worth 3 million dinars (approximately $10 million) to help finance the construction of the new Thaa Faimadoo Hospital, as part of the developmental cooperation between Kuwait and the Republic of Maldives.
Rashid Al-Badr, Acting Director General of the Kuwait Fund for Arab Economic Development, said in a statement that the project aims to develop healthcare services in Thaa Faimadoo and its neighboring islands by building a new hospital that meets the population’s health needs, improves the quality of medical services, and facilitates access to them.
Al-Badr added that the project is expected to reduce the need to transfer patients to other islands’ hospitals or to the capital, Malé, and to lessen reliance on maritime and air ambulance services, thereby easing the burdens associated with patient transfers and supporting the Maldivian government’s efforts to decentralize healthcare delivery and alleviate pressure on central hospitals.
He clarified that the project involves constructing a main four-story hospital building with a capacity of 50 beds and a construction area of approximately 32,113 square meters, as well as a single-story service building covering about 5,684 square meters.
He noted that the project includes civil and electromechanical works, provision of medical equipment and furniture, and necessary consulting services for implementation. The project is expected to take about three years to complete, with full completion anticipated in the second half of 2029.
He stated that the total project cost is estimated at approximately 6.3 million dinars, with the Kuwait Fund’s loan covering about 47.8 percent of the total cost, while the Government of the Republic of Maldives will cover the remaining amount and any potential cost overruns.
Al-Badr pointed out that the loan has a tenor of 24 years, including a grace period of four years, and will be repaid in 40 semi-annual installments, with the first installment due on the first payment date for interest or any other loan-related costs after the grace period expires.
He added that the interest rate on the loan is 1 percent annually, plus an annual fee of 0.5 percent to cover administrative costs and services related to the implementation of the loan agreement.
The statement indicated that the project financing is a continuation of the developmental cooperation between the Kuwait Fund for Arab Economic Development and the Republic of Maldives, which has included contributions to financing projects in vital sectors such as health, transport, and infrastructure.
It highlighted that last year, Velana International Airport was opened, with the Kuwait Fund having financed various stages of its development, reflecting the ongoing developmental partnership between the two sides and its role in supporting economic and social development in the Republic of Maldives.
