(Kuwait Fund for Arab Economic Development) Signs $3 Million Loan Agreement with Maldives

Kuwait City -- The Kuwait Fund for Arab Economic Development signed a loan agreement with the Government of the Republic of Maldives today, Wednesday, worth 3 million Kuwaiti dinars (approximately $10 million USD) to help finance the construction of the (Thaa) Faimaddu New Hospital, as part of the developmental cooperation between the State of Kuwait and the Republic of Maldives. The agreement was signed by Rashid Al-Badr, Acting Managing Director of the Kuwait Fund for Arab Economic Development, and Hassan Zureer, Minister of Finance and Public Enterprises of the Republic of Maldives.

In a statement to the Kuwait News Agency (KUNA), Acting Managing Director Rashid Al-Badr said the project aims to develop healthcare services on Thaa Faimaddu Island and its neighboring islands by constructing 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 for treatment to hospitals on other islands or to the capital, Malé, and to lessen reliance on maritime and air ambulance services. This will alleviate the burdens associated with patient transfers and support the Maldivian government’s efforts to decentralize healthcare delivery and reduce pressure on central hospitals.

He clarified that the project involves constructing a main hospital building consisting of four floors with a capacity of 50 beds and a construction area of approximately 13,321 square meters, as well as a single-story service building with an area of approximately 568.4 square meters.

The project includes civil and electromechanical works, the provision of medical equipment and furniture, and the necessary consulting services for implementation. The project is expected to take approximately three years to complete, with completion anticipated in the second half of 2029.

The total cost of the project is estimated at approximately 6.3 million dinars (about $19.2 million USD), with the Fund’s loan covering about 47.8 percent of the total cost. The Government of the Republic of Maldives will cover the remaining amount and any potential cost overruns.

Al-Badr noted that the loan has a tenor of 24 years, including a grace period of four years. It will be repaid in 40 semi-annual installments, with the first installment due on the first payment date for interest or other costs after the grace period expires. 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 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, the Velana International Airport was opened, a project whose development phases were funded by the Kuwait Fund, reflecting the ongoing developmental partnership between the two sides and its role in supporting economic and social development in the Republic of Maldives. (End) M.D. / H.T. / K.D.