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The Asian Development Bank has approved emergency funding to help the Maldives secure fuel supplies and protect essential services as global prices continue to rise.
Mariyam Adheela
Asian Development Bank (ADB) -- Photo: The Reality
MALÉ: The Asian Development Bank (ADB) has approved a $50 million emergency loan to help the Maldives finance fuel imports amid rising international prices linked to the conflict in the Middle East.
The funding will support fuel purchases needed for electricity generation, drinking water, healthcare and food logistics, inter-island transport, and waste management.
The Maldives relies completely on imported fuel, with most supplies coming from the Middle East. According to ADB, fuel accounts for about 94 percent of the country’s electricity generation and is also needed to operate desalination plants.
The country requires around 8,000 barrels of diesel each day to produce electricity, equal to about 2.9 million barrels annually.
The Environment Ministry reported in May that monthly fuel import costs had increased from approximately $50 million to $116 million, a rise of 132 percent.
ADB said the conflict has also affected tourism, reducing government revenue and making it harder to finance fuel imports.
The new assistance follows a $40 million financing package approved by the World Bank in May for fuel security.
ADB said the latest funding will help maintain essential services and reduce the risk of disruptions caused by shortages.
