The loan agreement signing ceremony for the Development of Hulhumale Island Project (Phase II), a project financed by the Saudi Fund for Development, was held at the Ministry today. Under this agreement, the Saudi Fund has provided financing of SAR 300 million (approximately USD 80 million) for the Project.

The project will enable the government to achieve its broader development objective of population consolidation through the provision of housing facilities, by ensuring that the land reclaimed under the Hulhumale Phase II provides the necessary services for the residents that will populate the area. As such, this project consists of key components such as coastal protection and development of harbours.

His Excellency Abdulla Jihad, Minister of Finance and Treasury signed the agreement on behalf of the Government of Maldives, and His Excellency Youssef I Al-Bassam, Vice Chairman and Managing Director of the Fund signed on behalf of the Saudi Fund for Development. Mr Mohamed Saiman, Managing Director of the Housing Development Corporation, the implementing agency of the project, and Dr Mohamed Shainee, the Minister of Fisheries and Agriculture, also attended the ceremony.

The loan is to be repaid within 25 years, including a grace period of 5 years, at an interest rate of 2%  per annum.