ADB approves USD 21.95 million financing package for Maldives

Nov 12, 2024, 5:47 AM
ADB approves USD 21.95 million financing package for Maldives

Asian Development Bank (ADB) has approved a USD 21.95 million financing package for the Maldives.

ADB decided to provide the funds to help the Maldives address damage caused by climate change and establish food security.

Out of the USD 21.95 million financing package, USD 4 million is a loan and the remaining USD 17.95 million is a grant of ADB's assistance to the poorest and most vulnerable developing member countries.

“Majority of Maldives’ islands and atolls lie less than one meter above sea level making them highly vulnerable to climate change. Threats such as coastal erosion, sea level rise, and increasing frequency of cyclones pose a major concern for short- and long-term food security of the population. Increasing extreme weather events cause food supply chain disruptions for the import-dependent country,” said ADB Principal Natural Resources and Agriculture Economist Michiko Katagami.

“This project will introduce a holistic adaptation investment approach, combining innovative infrastructure solutions with nature-based initiatives and urban farming to build lasting resilience.”

Environment Minister Thoriq Ibrahim said the new assistance will help prepare for climate change and ensure food security in a sustainable manner.

He added that the assistance will enable the country to explore appropriate adaptation options and enhance its capacity to manage the weather forecast, strengthen its early warning systems and enhance food security.

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