ADFD loans $5.9m to the Maldives for power plant
The waste-to-energy project was identified as part of the first loan cycle of the IRENA/ADFD Project Facility, which is valued at $41m (AED150.6m).
The Abu Dhabi Fund for Development (ADFD) has signed a loan agreement to provide $5.9m (AED22m) for a waste-to-energy plant in the Maldives.
The agreement was signed by HE Mohammed Saif Al Suwaidi, director general of ADFD, and HE Abdulla Jihad, the Maldives' Minister of Finance.
The project will involve the installation of a power plant that will utilise waste in an eco-friendly manner to generate approximately 4MW of energy from heat. It is expected to meet 18% of electricity demand in Addu City.
The plant will also help to save around 1.9m litres of diesel, whilst reducing the city's total waste by 10%. The scope of the work to be carried out will involve civil, electrical, and mechanical applications at the facility.
Commenting on the project, Al Suwaidi said: “The UAE is working through ADFD to promote the widespread deployment of renewable energy towards achieving sustainable economic and social development in emerging economies. This loan agreement with the Government of Maldives will significantly contribute to meeting the electricity needs of large portions of the population of Maldives from clean sources.”
The project is being funded as part of ADFD’s support for the renewable energy sector. In 2009, ADFD committed concessional financing of up to $350m (AED1.25bn) across seven funding cycles for renewable energy projects in developing countries. $49.8m (AED183m) was allocated for each cycle.
The projects are selected by International Renewable Energy Agency (IRENA) member states.
The waste-to-energy project was identified as part of the first loan cycle of the IRENA/ADFD Project Facility, which is valued at $41m (AED150.6m). Announced at the end of 2013, this cycle is providing concessionary loans to six renewable energy projects in Ecuador, the Maldives, Mali, Samoa Islands, Mauritania, and Sierra Leone. Together, the first and second cycles of ADFD/IRENA Project Facility provided $98m in loans to fund 11 projects in Ecuador, the Maldives, Mali, Samoa Island, Mauritania (two projects), Sierra Leone, Argentina, Cuba, Iran, and St Vincent and the Grenadines.