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The government of Maldives has sealed an up to USD-50.5-million (EUR 46.3m) financing agreement with the Asian Development Bank (ADB) aimed at supporting renewable power generation and grid upgrade projects in the South Asian archipelago.
The funding will consist of USD 41.5 million in grant financing from the Asian Development Fund and a USD-8.5-million concessional loan from ADB’s ordinary capital. An additional USD 500,000 will come as grant financing from the Climate Fund, ADB said on Wednesday.
The fresh capital will be allocated to install grid-scale energy storage facilities and solar photovoltaic (PV) plants, as well as energy management facilities. The plan also envisages carrying out distribution grid upgrades in 20 outer islands, as well as installing ocean-based floating solar panels, wave power plants, small wind turbines and flow batteries.
A co-financing arrangement of USD 48 million with the Asia-Pacific Climate Finance Fund, Clean Technology Fund, Japan Fund for the Joint Crediting Mechanism (JFJCM), and investments from the private sector will also go for the initiative. An additional USD 1.97 million in counterpart financing will be extended from the government of Maldives.
The Maldives last December committed to deploying enough renewable energy capacity that will enable it to source 33% of its power from renewables within five years.
(USD 1.0 = EUR 0.916)
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