India, Maldives sign LOC agreement of $400 mn for GMCP implementation
In August 2020, India had announced that it will fund the implementation of Greater Male Connectivity Project (GMCP) through a USD 100 million grant and USD 400 million Line of Credit (LOC).
India and Maldives on October 12, 2020 concluded the Line of Credit (LOC) Agreement of USD 400 million for the implementation of the Greater Male Connectivity Project (GMCP). It is the single largest connectivity and infrastructure project in the island nation.
The agreement was signed between Nirmit Ved, General Manager of Exim bank and Maldives Finance Minister Ibrahim Ameer. The news of the conclusion of LOC agreement was shared by an Indian High Commission in Maldives through official twitter account.
$400 million LoC Agreement concluded for implementation of the Greater Malé Connectivity Project - single-largest connectivity & infrastructure project in the 🇲🇻;— India in Maldives (@HCIMaldives) October 12, 2020
a national economic engine connecting Hulhumalé , Hulhule & Malé with the proposed Gulhifalhu Port & Thilafushi! pic.twitter.com/9wEMQA56tO
Funding the implementation of GMCP:
In August 2020, India had announced that it will fund the implementation of GMCP through a USD 100 million grant and USD 400 million LOC. As per the External Affairs Minister, S Jaishankar, 6.7 km bridge project connecting Male with Gulhifalhu Port and Thilafushi Industrial Zone will help in transforming and revitalizing the Maldivian economy.
Minister of Finance @iameeru and Mr. Nirmit Ved, General Manager of @Indiaeximbank has today signed a Dollar Credit Line (LOC) Agreement of USD 400 million for the purpose of financing the Greater Male’ Connectivity-Male’ to Thilafushi Link Project #GMCP pic.twitter.com/ZGvV6GgXfh— Ministry of Finance (@MoFmv) October 12, 2020
The funding was announced after the meeting between India’s External Affairs Minister and Foreign Minister of Maldives. S. Jaishankar had also announced the start of regular cargo ferry service between the two nations to boost trade and commerce.
Financial assistance from India to Maldives:
Earlier on September 20, 2020, India had also provided over $250 million to the neighbouring country as the financial assistance to face the economic challenges arising because of the COVID-19 pandemic.
The aid was provided by India in response to an urgent request which was made by Maldives President, Ibrahim Mohamed Solih to PM Modi for reducing the financial impact occurred due to the outbreak of the COVID-19.