Supported by the ADB, the loan will be offered for a solid waste treatment system to be built in the Greater Malé region
The Asian Infrastructure Investment Bank (AIIB) has agreed to provide a loan of $40m to the Maldives for the development of a waste-to-energy project with 8MW of capacity by 2024.
The loan from AIIB is being supported by the Asian Development Bank (ADB) and the Japan Fund for the Joint Crediting Mechanism.
To be built in the Greater Malé region, the solid waste treatment system is expected be a place of safe disposal or recycling water and reducing greenhouse gas emissions, while generating electricity from waste.
The waste-to-energy project can handle up to 500 tonnes of waste
The new facility is expected to handle up to 500 tonnes of waste per day and could come online by the end of 2024.
AIIB investment operations vice president D.J. Pandian said: “The Greater Malé Waste-to-Energy project will benefit the people in the Greater Malé region, as well as have a wider global impact by reducing greenhouse gas emissions and mitigating the impacts of climate change.
“AIIB welcomes the opportunity to partner with the Government of Maldives and other partners to create a more sustainable waste management system.”
The waste-to-energy project also includes a capacity building component to support the government officials manage the project and conduct environmental monitoring.
In April, AIIB has agreed to provide $385m loan to improve water access in Uzbekistan.
The funding will be used to provide access to safely managed water and sanitation services as well as strengthen the operational performance of water utility in Bukhara Region in country.