India and Maldives: Maldives state-owned Fahi Dhiriulhun Corporation recently signed loan agreements with India’s state-owned National Buildings Construction Company (NBCC) and JMC Projects (India) Ltd. virtually.
- The virtual signing ceremony was attended by Minister of Economic Development Fayyaz Ismail, Minister of Finance Ibrahim Ameer and High Commissioner Sunjay Sudhir, along with representatives from EXIM Bank, FDC, NBCC and JMC.
- The signing of this agreement comes weeks after the Maldives government officially inked a deal with Mumbai-based company AFCONS, for the construction of the Greater Malé Connectivity Project (GMCP), a $500-million infrastructure project which is the largest-ever by India in the Maldives.
- This is a part of India’s developmental assistance project in the Maldives.
- The agreement was signed to develop 4,000 social housing units in Hulhulmalé (phase II) island.
- India’s state owned Exim Bank extended buyer’s credit of approximately $228 million for the construction of these housing units.
- The construction will be undertaken by the Imdia’s National Buildings Construction Company (NBCC) and JMC Projects (India).
- The contracts for engineering, procurement and construction (EPC) were signed between Fahi Dhiriulhun Corporation and India’s state-owned National Buildings Construction Company (NBCC) to develop 2,000 social housing units, while India-based JMC Projects has been contracted to develop 2,000 additional units.
Why is it important?
- Close to 40% of the entire population of the Maldives lives in Malé, the capital city, that has an area of approximately 8.30 square kilometres, making it one of the most densely populated cities in the world.
- Social housing is an important requirement in the Maldives because in addition to housing shortage, high rent prices is a major challenge for ordinary people in the country.
- The Maldives, officially the Republic of Maldives, is a small island nation in South Asia.
- It is situated in the Arabian Sea of the Indian Ocean.
- It lies southwest of Sri Lanka and India.
- The Capital of Maldives is Male.
- The Currency of the Maldives is Maldivian Rufiyaa.
- The current President of the Maldives is Ibrahim Mohamed Solih.