The Maldives has signed a USD 50 million loan agreement with the Asian Development Bank (ADB) to implement the Energy Security Emergency Assistance Project.

Finance and Public Enterprises Minister Hassan Zareer signed the agreement on behalf of the government, while ADB Regional Head of the Regional Cooperation and Integration Unit Dr Thiam Hee Ang signed for the bank. STO Managing Director and CEO Shimad Ibrahim also signed the project agreement.

The Finance Ministry said the project aims to support fuel expenditure amid expected increases in global oil prices linked to developments in the Middle East.

The ministry said the loan is a concessional facility secured as part of the government’s efforts to obtain concessional financing from multilateral financial institutions. Such financing will also help keep government debt at sustainable levels.