Modi offers $100M aid for Maldives infra works
Reaffirming close bilateral ties, with “central pillars” like Indian development assistance along with trade and defence ties after talks, with visiting Maldivian President Ibrahim Mohamed Solih in Delhi on Tuesday during which six pacts were inked, Prime Minister Narendra Modi announced offer of a new Government of India Line of Credit of $100 million to finance infrastructure projects in Maldives.
Both leaders also participated in a virtual ceremony to mark the “pouring of the first concrete” in the $500 million Greater Male’ Connectivity Project that is being built under grant and concessional loan support from India.
It is the biggest infrastructure project in the tiny archipelago nation that will “enhance mobility between (the Maldivian Capital) Male, Villingili, Gulhifalhu and Thilafushi islands, cut down logistics cost and drive people-centric economic growthwhich will be a symbol of enduring friendship between the two countries”.
Of the $500 million for this project, $400 million is
from India’s line of credit while the remaining $100 million is a special grant from India.
The Maldives will also be able to now boost its exports to India through export of Tuna fish without duties under the South Asian Free trade Area (SAFTA).
Ties were also ramped up in the field of defence and security, with Prime Minister Modi announcing supply of the second Landing Assault Craft (LCA) and a replacement ship for earlier provided CGS Huravee from India for the Maldives National Defence Force (MNDF) and also announced gifting of 24 utility vehicles from India to the MNDF.
One of the six pacts inked was also on an agreement between the EXIM Bank of India and the Maldivian Finance Ministry for US$ 41 million Buyer’s Credit Financing of Police Infrastructure in Maldives.
India is already extending support for modernisation of MNDF infrastructure and equipment, through grant assistance and a $50 million line of credit facility for defence projects.
The two leaders also “welcomed the exchange of Buyers Credit Agreement for design and construction of 61 police infrastructures across Maldives that will contribute to improved access to policing and to ensure the safety and security of the communities in the islands”.