Abu Dhabi, Dec. 12 (BNA) The Abu Dhabi Fund for Development, the economic development arm of the government of the United Arab Emirates, signed an agreement to provide a concession loan of 51.4 million dirhams (14 million US dollars) to support development. A new waste-to-energy plant on Ado Island in the Maldives, a project selected under the ADFD-IRENA project facility.
The agreement was signed by His Excellency Mohammed Saif Al Suwaidi, Director General of the Abu Dhabi Fund for Development, and His Excellency Ibrahim Amir, Minister of Finance of the Maldives. The signing ceremony was attended by His Excellency Khalifa Al Qubaisi, Deputy Director General of the Fund, and the signing ceremony was attended by the participation of senior representatives of the two parties.
The new waste diversion and water treatment facility will generate 1.5 megawatts of clean energy to provide electricity to more than 6,000 homes in Addo and adjacent islands. The plant will reduce the total volume of waste on the island by 10%, which contributes to the waste management strategy of the Maldives as well as climate action goals.
The facility will also contribute to the economic development strategy of the Maldives by strengthening the energy sector, reducing dependence on fuel imports, and creating new job opportunities through both the construction phase and ongoing operations and maintenance of the facility.
For his part, His Excellency Mohammed Saif Al Suwaidi, Director General of the Abu Dhabi Fund for Development, said: “This project is important because it represents the primary objective of the Fund on several levels. ADFD’s commitment to support climate action and renewable energy goals in the UAE reinforces while providing Ado residents with a sustainable renewable energy source that also addresses local waste management challenges. The financing of this project reflects the Fund’s commitment to supporting the renewable energy sector in developing countries, which will positively impact the sustainable economic development of these countries.”
The waste-to-energy project is an important step in support of the Maldives government’s strategy, which aims to increase clean energy production and significantly reduce dependence on electricity production from fossil fuels. It is the second project funded by the Abu Dhabi Fund for Development in the field of converting waste to energy in the Maldives.”
His Excellency Ibrahim Amir, Minister of Finance of the Maldives, said: “This is a strategically important project for the Maldives and the people of Addo Island. Waste-to-energy is a smart approach to advancing national waste management and emissions reduction goals while creating high-value jobs and providing our residents with reliable clean energy. We greatly appreciate our partnership with the Abu Dhabi Fund for Development and the UAE to support the development of this and other high-impact infrastructure projects across the country.”
This is the second waste-to-energy project supported by the Abu Dhabi Fund for Development in the Maldives. Through this soft loan, which will cover 50% of the total project development cost estimated at 102.8 dirhams (US$28 million). In 2015, the fund contributed to the financing of a waste-to-energy plant with a production capacity of 4 megawatts. This project has been approved by the Global Innovation Institute (GINI) as an innovative project due to its significant contribution to achieving the country’s solid waste management strategy and reducing waste volume by 10%. Building on the positive results that this project has had on the Maldivian economy and society, the Fund today, through this agreement, supports the replication of the project to serve other regions and islands in the Maldives.
His Excellency Mohammed Saif Al Suwaidi added: “With the launch of the UAE Net Zero by 2050 initiative, the UAE continues to demonstrate its commitment to being a global leader in climate action, adopting clean energy and reducing carbon emissions here at home, throughout the region and throughout the scientist. As a nation, we were among the first to ratify the Paris Agreement and our 2050 National Energy Plan calls for a 70% reduction in the carbon footprint of power generation. The Abu Dhabi Fund for Development is committed to promoting this national strategic imperative by supporting projects such as the waste-to-energy plant in the Maldives as well as to help promote the growth of the green economy in the UAE as part of the fund’s national economic development and diversification.”
The Abu Dhabi Fund for Development has had strong relations with the Government of the Maldives since 1976. The Fund has financed ten development projects in the country valued at approximately 751 million dirhams, covering important social and economic sectors such as housing, communications, transportation, energy and education.
Waste-to-energy is one of the many renewable energy sources ADFD supports that also include wind, solar, hydro, geothermal and biomass technologies as part of its long-term commitment to combating climate change. In all, the fund has supported the development of 90 renewable energy projects in 65 countries around the world that have the capacity to generate more than 9,000 megawatts of electricity.
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