$100M Grant For Key Connectivity Project In Male, India And Maldives Sign 4 Agreements

Shringla who is on a two-day visit to Maldives as part of New Delhi’s outreach to key countries in the neighborhood and beyond. The Maldives is the sixth country the foreign secretary has visited in the aftermath of pandemic-related travel restrictions, the others being Bangladesh, Myanmar, France, Germany and the UK.

Four agreements including a $100 million connectivity project were signed between India and Maldives on Monday. The agreements were made after the foreign Secretary of India Harsh V Shringla visited the Island country.

Shringla who is on a two-day visit to the Maldives as part of New Delhi’s outreach to key countries in the neighborhood and beyond. The Maldives is the sixth country the foreign secretary has visited in the aftermath of pandemic-related travel restrictions, the others being Bangladesh, Myanmar, France, Germany, and the UK.

In the agreements that were signed, signed by both sides is the grant of $100 million by India for the $500-million Greater Male Connectivity Project (GMCP) that will be linking the country’s capital Male with three islands.

India will also be providing another $400-million line of credit for the project, the largest such infrastructure venture undertaken in the Maldives.

The other agreements include setting up soil and plant testing laboratories through a grant of 1.71 million Maldivian rufiyaas, establishing a drug detox facility through a grant of another 7.7 million Maldivian rufiyaas, and cooperation in sports and youth affairs.

The GMCP, “an economic lifeline connecting Male with Villingili, the new commercial port at Gulhifalhu and industrial zone at Thilafushi” will “conform to the hallmarks of Indian development cooperation – transparency, full participation and ownership of the host country, and competitive pricing”, Shringla said while speaking at the foreign ministry in Male.

“We deeply appreciate the government of President [Ibrahim] Solih for its ‘India First’ foreign policy. This is reciprocated in full measure by our ‘Neighbourhood First’ policy in which the Maldives enjoys a very special and central place,” he said.

Talks between Shringla and his Maldivian counterpart Abdul Ghafoor Mohamed focused on economic recovery post the pandemic. They emphasized “resilience efforts to curb the onset of the Covid-19 pandemic, including boosting tourism, accelerating the implementation of the ongoing development cooperation projects across the Maldives, and the means of elevating connectivity and bilateral trade”, according to a statement from the Maldives’ foreign ministry.

In order to boost the economy of the country, India has unveiled a slew of measures to boost economic recovery in the Maldives, where the tourism industry has been hit hard by the pandemic. In September, India as budgetary support provided a soft loan of $250 million. The two sides also launched a cargo ferry service to cut transportation costs.

Shringla began his visit by meeting with President Solih, seen as one of India’s strongest allies in the neighborhood.

The two sides discussed ways to enhance regional trade and connectivity, economic cooperation, tourism, and overcoming the pandemic.

Since the Maldives has opened its borders has witnessed a lot of tourists from India, Solih thanked the Indian government for agreeing to implement an air bubble between the two sides and noted that increasing numbers of Indians.

Solih thanked India for backing development projects through a line of credit agreements, including the GMCP, Gulhifalhu port project, water, and sewerage projects on 34 islands, and a cancer hospital.

Assuring, “continued assistance to safeguard our shared interests in the Indian Ocean”, according to a tweet from the Indian high commission Shringla also met the country’s defense minister Mariya Didi.