India has offered a new line of credit of $100 million to Maldives to finance infrastructure projects, Prime Minister Narendra Modi announced following his talks with Maldives President Ibrahim Mohamed Solih in New Delhi on Tuesday.
Solih, who is on a four-day official visit to India, said the additional fund would enable implementation of several large infrastructure projects that have been under various stages of discussion, according to an official release issued by the Ministry of External Affairs.
“India-Maldives partnership is not only working to benefit citizens of the two countries but is also proving to be a source of peace, stability and development for the region. India has always been a first responder whenever Maldives has faced a need and the same will continue,” Modi said in a press briefing after the bilateral meeting.
Other important announcements included approval for award of EPC contract for the $128-million Hanimadhoo Airport Development project under line of credit, approval of DPR and commencment of tendering process of the $324-million Gulhifahlu Port development project under line of credit, approval of feasibility report and financial closure for the $30-million cancer hospital project under line of credit and $119 million buyer’s credit financing by Exim Bank of India for additional 2,000 social housing units in Hulhumale, the release said.
“Both leaders reviewed the progress achieved in the development of the 4,000 social housing units being built in Greater Male under buyer’s credit financing of Exim Bank of India. These housing units are in line with the Government of Maldives’ focus of providing affordable housing for its citizens,” the release pointed out.
There were some other announcements as well including facilitation of duty free tuna exports to India from Maldives, supply of a replacement ship for the earlier provided ship-CGS Huravee -to Maldives National Defence Force, supply of the second Landing Craft Assault to Maldives National Defence Force and gifting of 24 utility vehicles to Maldives National Defence Force.