Kuwait Fund for Arab Economic Development grants Maldives three million dinars to finance hospital construction - Sarmad

The Kuwait Fund for Arab Economic Development signed a loan agreement with the Government of the Republic of Maldives today, Wednesday, worth three million Kuwaiti dinars, to help finance the construction of the new Taafannu 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 Director General of the Kuwait Fund for Arab Economic Development, and Hassan Zareer, Minister of Finance and Public Enterprises of the Republic of Maldives.

In a press statement, Acting Director General Rashid Al-Badr said the project aims to develop healthcare services in Taafannu Island 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 decrease reliance on maritime and air ambulance services, thereby alleviating the burdens associated with patient transfers and supporting the Maldivian government’s efforts to decentralize healthcare delivery and ease pressure on central hospitals.

He explained that the project involves constructing a main hospital building consisting of four floors with a capacity of 50 beds and a built-up area of approximately 13,321 square meters, as well as a one-story service building with an area of approximately 568.4 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 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), 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 pointed out that the loan has a term 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 any other costs on the loan after the grace period ends.

He added that the interest rate on the loan is 1 percent per annum, plus an annual fee of 0.5 percent to cover administrative costs and services related to the implementation of the loan agreement.

The statement noted that the project’s funding is an extension 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, the Velana International Airport was opened, a project whose development phases were funded by the Kuwait Fund, reflecting the continued developmental partnership between the two sides and its role in supporting economic and social development in the Republic of Maldives.