The Asian Development Bank (ADB) has arranged an emergency assistance loan of USD 50 million (MVR 772.5 million) for the Maldives.

ADB stated yesterday that the funds provided under its "Energy Security Emergency Assistance Project" will be used to import diesel required for electricity generation and water production, as well as for transporting food and medical supplies, waste management operations, and inter-atoll transport and cargo delivery.

ADB noted that the Maldives is a nation heavily reliant on imported fuel, with diesel accounting for 94 percent of electricity generation.

However, as the conflict in the Middle East has driven up fuel prices and led to a decline in tourist arrivals to the Maldives, the government is facing financial challenges in importing fuel.

In addition to the ADB loan, the World Bank also arranged a USD 40 million loan for the Maldives last May to support fuel imports.