Abu Dhabi Fund for Development (ADFD), UAE’s economic development arm, signed an agreement to grant a $14 million concessionary loan to finance the development of a new waste-to-energy plant on Ado Island in the Maldives.
The new waste conversion and water treatment facility, which was selected under ADFD-IRENA Project Facility, will produce 1.5 megawatts of clean energy, enough to power around 6,000 homes in Ado and the surrounding islands.
The plant will also reduce the total waste volume on the island by 10 percent, contributing to the Maldives waste management strategy as well as climate action targets.
The agreement was signed by Mr. Mohammed Saif Al Suwaidi, Director-General of ADFD, and Mr. Ibrahim Ameer, Minister of Finance of Maldives. The signing ceremony was attended by Mr. Khalifa Al Qubaisi, Deputy Director-General of ADFD, and drew the participation of senior representatives of the two parties.
This is the second waste-to-energy project supported by ADFD in the Maldives. In 2015, the Fund contributed to the financing of a waste-to-energy plant with a production capacity of 4 megawatts. This concessionary loan will cover 50 percent of the total project development cost estimated at $28 million.
“This project is significant as it represents the core purpose of the Fund on many levels. It advances ADFD’s commitment to supporting UAE’s climate action and renewable energy goals while providing the people of Ado with a sustainable renewable energy source that also addresses local waste management challenges. Financing this project reflects the Fund’s commitment to supporting the renewable energy sector in developing countries, which will positively affect sustainable economic development for these countries.”
The project was certified by the Global Innovation Institute (GINI) as an innovative project due to its important contribution to achieving the country’s strategy for solid waste management. Based on the positive results achieved by this project on the Maldivian economy and society, the Fund today supports, through this agreement, the replication of the project to serve other regions and islands in the Maldives.
ADFD has had positive relations with the Government of the Maldives since 1976. The Fund has invested ten development projects in the country valued at approximately $204.4 million, spanning crucial socio-economic sectors such as housing, communications, transport, energy, and education.