Kuwait Fund signs $9.7m loan for Th. Vaamandoo hospital, raises annual limit to $40m

A loan agreement worth $9.7 million has been signed between the Government of Maldives and the Kuwait Fund for Arab Economic Development (KFAD) to construct a new hospital in Th. Vaamandoo. The agreement was signed on behalf of the Government of Maldives by Minister of Finance Hassan Zareer at a ceremony held at the Ministry of Finance and Public Enterprises. This marks the first loan assistance provided by the fund to Maldives' health sector. Acting Director General of the Kuwait Fund, Rashid Al-Bader, said the hospital will be an important facility providing reliable, high-quality health services to the entire region. The Ministry of Finance stated that the main objective of the project is to establish decentralized secondary-level health services in Th. Atoll, reducing travel and expenses required to go to Malé for treatment. The Ministry added that residents of the atoll as well as tourists visiting the region will benefit from these services. Al-Bader noted that this is the 15th loan released by the fund to Maldives and the first investment in the health sector. He also highlighted that 50 years have passed since the fund began providing assistance to Maldives in 1976, with 14 loans totaling $185 million released over the past period, along with approximately $5.7 million in grants and technical assistance. During an honor meeting after the signing ceremony, Al-Bader revealed that the fund has decided to increase Maldives' annual country limit from approximately $10 million to $40 million starting next year. He also stated that consultations and preparations regarding the financing of the large-scale Tilafushi Port development project will begin immediately.