Release date: 8 July 2015
Promoter – Financial Intermediary
The project will finance individual minigrid systems consisting of solar photovoltaic panels, together with efficient modern diesel generators, and integrated lithium accumulators in the Maldives' outer islands.
The objective of the project is to reduce diesel usage and the cost of electricity generation, enhance the use of renewables, provide affordable power to unserved and under-served businesses and residences, and reduce CO2 emissions. The project is expected to have a high contribution to both EU and country priorities, by promoting the use of renewable energy and environmental sustainability as well as by reducing one of the main structural impediments to growth, namely the supply of energy. The project notably supports the Government of Maldives' goal of becoming carbon neutral by 2020. Furthermore the project is in line with the EU priority objectives of promoting renewable energy, tackling climate change and reducing poverty.
This operation is covered by the EU Guarantee for EIB loans outside the EU.
Proposed EIB finance (Approximate amount)
EUR 45 million
Total cost (Approximate amount)
EUR 175 million
Given the technical scope of the project, were it in the EU, it would fall under Annex II of the Environmental Impact Assessment (EIA) Directive, requiring the screening of the project by the competent authority to determine whether a full EIA would be required. ADB, as lead co-financier, has already completed a full environmental and social due diligence process, for which environmental and social framework studies have been prepared (covering the whole project, i.e. 160 or so islands) and approved by the competent authority. Specific atoll or sub-project-specific environmental and social assessments will be prepared at a later stage; these have already been prepared and approved for five pilot islands (Phase I). On a preliminary basis, the environmental and social assessment is understood to be in line with the Bank's standards. This will be further reviewed during appraisal.
Most projects are expected to be operations in the public sector, implemented and procured by the concerned public utilities in Maldives. Sub-projects financed by the Bank will be procured on an atoll-by-atoll basis using the Bank's public procurement procedures. Some private investments may be also supported under the operation, for which the appropriate provisions of the Guide to Procurement will be applied. In any case, the Bank will require the promoter to ensure that implementation of the project will be done in accordance with the Bank's Guide to Procurement.
Signed - 10/03/2016
Before financing approval by the Board of Directors, and before loan signature, projects are under appraisal and negotiation. The data provided on this page is therefore indicative and cannot be considered to represent official EIB policy (see also the Explanatory notes).