ABU DHABI, (Pakistan Point News - 12th Dec, 2021) Abu Dhabi Fund for Development (ADFD), the economic development arm of the UAE government, signed an agreement to provide a concessionary loan valued at AED 51.4 million (US$14 million) to support development of a new waste-to-energy plant on Ado Island in the Maldives, a project which was selected under ADFD-IRENA Project Facility.
The Agreement was signed by Mohammed Saif Al Suwaidi, Director-General of ADFD, and Ibrahim Ameer Minister of Finance of Maldives.
The signing ceremony was attended by Khalifa Al Qubaisi, Deputy Director-General of ADFD, and drew the participation of senior representatives of the two parties.
The new waste conversion and water treatment facility will generate 1.5 megawatts of clean energy to provide electricity to more than 6,000 homes in Ado and surrounding islands. The plant will reduce total waste volume on the island by 10 percent, contributing to the Maldives waste management strategy as well as climate action targets.
The facility will also contribute to the Maldives economic development strategy by strengthening the energy sector, reducing reliance on fuel imports, and creating new job opportunities through both the construction phase and ongoing operations and maintenance of the facility.
Mohammed Saif Al Suwaidi, Director-General of ADFD, said, "This project is significant as it represents the core purpose of the Fund on many levels. It advances ADFD’s commitment to support UAE’s climate action and renewable energy goals while providing the people of Ado with a sustainable renewable energy source that also addresses local waste management challenges. Financing this project reflects the Fund's commitment to supporting the renewable energy sector in developing countries, which will positively affect sustainable economic development for these countries."
"This waste-to-energy project is an important step in supporting the Maldives government’s strategy aimed at increasing the proportion of clean energy production and reducing dependence on electricity production from fossil fuels by a large percentage. It is the second project funded by ADFD in the field of waste-to-energy in Maldives."
Ibrahim Ameer, Maldives Minister of Finance, said, "This is a strategically important project for the Maldives and the people of Ado Island. Waste-to-energy represents a smart approach to advancing our national waste management objectives and emissions reduction targets while creating high-value jobs and providing our residents with reliable clean energy. We greatly value our partnership with ADFD and the UAE to support the development of this and other high impact infrastructure projects across the country."
This is the second waste-to-energy project supported by ADFD in the Maldives. With this concessionary loan, which will cover 50 percent of the total project development cost estimated at AED 102.8 (US$28 million).
In 2015, the Fund contributed to the financing of a waste-to-energy plant with a production capacity of 4 megawatts. This project was certified by the Global Innovation Institute (GINI) as an innovative project due to its important contribution to achieving the country’s strategy for solid waste management and driving a 10 percent reduction in waste volume. Based on the positive results achieved by this project on the Maldivian economy and society, the Fund today supports, through this agreement, the replication of the project to serve other regions and islands in the Maldives.
Mohammed Saif Al Suwaidi added, "With the introduction of the UAE Net Zero by 2050 Strategic Initiative, the UAE continues to demonstrate its commitment to be a global leader in climate action, the adoption of clean energy and the reduction of carbon emissions here at home, across the region and worldwide. As a nation, we were among the first to ratify the Paris Agreement and our National Energy Plan 2050 calls for reducing the carbon footprint of power generation by 70 percent. ADFD is committed to advancing that national strategic imperative by supporting projects such as this waste-to-energy plant in the Maldives as well as to help promote the growth of the UAE green economy as part of ADFD’s national economic development and diversification mandate."
ADFD has enjoyed strong relations with the Government of the Maldives since 1976. The Fund has financed ten development projects in the country valued at approximately AED 751 million, spanning crucial socio-economic sectors such as housing, communications, transport, energy, and education.
Waste-to-energy is one of the many renewable energy sources supported by ADFD which also includes wind, solar, hydro, geothermal and biomass technologies as part of its long-term commitment to combat climate change. In total, ADFD has supported the development of 90 renewable energy projects in 65 countries around the world that have the capacity to generate more than 9,000 megawatts of electricity.
