Maldives Signs $9.7M Loan Agreement with Kuwait Fund for Veymandoo Hospital

The Maldives has secured approximately USD 9.7 million from the Kuwait Fund for Arab Economic Development (KFAED) to build a new 50-bed hospital in Th. Veymandoo, addressing space constraints at the existing atoll hospital and expanding access to secondary healthcare.

The loan agreement, valued at KWD 3 million, will finance the Th. Veymandoo New Hospital Construction Project. The fully equipped facility is intended to serve residents of the island and surrounding communities, providing more space for treatment, medical equipment and additional services.

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Minister of Finance and Public Enterprises Hassan Zareer signed the agreement on behalf of the Government, while KFAED Acting Director General Rashaid A. Al-Bader signed for the fund. The Minister of Health, Family and Welfare and senior Kuwait Fund officials also attended the ceremony.

The project aims to improve access to healthcare within Thaa Atoll by expanding the hospital’s capacity and allowing its space to be organised more effectively for service delivery.

Speaking at the signing, Minister Zareer identified equitable access to quality healthcare as a national priority, given the challenges of delivering services across the Maldives’ geographically dispersed islands. He described the project as an investment in public health and long-term well-being.

The agreement is KFAED’s 15th loan to the Maldives and its first investment in the country’s health sector, Al-Bader said.

It also coincides with 50 years of cooperation since the first agreement between the Maldives and the fund in 1976. Over that period, KFAED has provided 14 concessional loans totalling approximately USD 185 million, alongside USD 5.7 million in grants and technical assistance.

Minister Zareer highlighted the fund’s support for airport development, including projects at Velana International Airport and the expansion of its new terminal, as well as the Fuvahmulah Coastal Protection Project.

The hospital financing was arranged within KFAED’s existing annual country lending limit of USD 10 million for the Maldives. During a courtesy call following the signing, Al-Bader announced that the fund had decided to increase that limit to approximately USD 40 million a year from 2027.

The decision followed a request by Minister Zareer during discussions on the sidelines of the Asian Infrastructure Investment Bank’s annual meeting. The higher ceiling will expand the scope for the Maldives to seek financing from the fund for future development projects.

KFAED also expressed strong interest in participating in the Thilafushi port development project following an invitation from Minister Zareer, indicating its readiness to begin financing discussions. No financing agreement for the port was announced.