China agrees to bolster cooperation with Maldives in infrastructure and renewable energy projects, ET EnergyWorld

Beijing: China has agreed to strengthen its collaboration in key infrastructure and renewable energy projects that are vital for the sustainable development of the Maldives, Foreign Minister Moosa Zameer said on Tuesday. Zameer said that he held a “fruitful meeting” with Luo Zhaohui, chairman of China International Development Cooperation Agency (CIDCA) where they discussed key infrastructure projects. Zameer further said that he was “delighted” to have witnessed the signing of the Letter of Exchange on the feasibility study for the redevelopment of Male and Villimale Roads Project, a key pledge of President Mohamed Muizzu’s government.

The discussions focused on strengthening collaboration in key infrastructure projects that are vital for the sustainable development of the Maldives, the Maldivian foreign ministry said in a press release.

Zameer emphasised the importance of the partnership between the Maldives and CIDCA, highlighting ongoing initiatives and exploring new opportunities for cooperation.

Both sides agreed on the importance of timely implementation of projects that will improve infrastructure and enhance economic growth in the Maldives, thus providing substantial benefits for the Maldivian people, the release said.

The meeting concluded with a mutual commitment to collaborate closely, ensuring the successful execution of future initiatives that benefit both nations, it said.

Earlier, Zameer shared photos from his meeting with Jin Liqun, president and chair of the Board of Directors of the Asian Infrastructure Investment Bank (AIIB).

“Greatly appreciate AIIB’s support over the years in promoting and protecting our interests through deeper partnerships and innovation, notably the Greater Male’ Waste-to-Energy Project,” he wrote.

Zameer said they also discussed potential funding avenues for President Muizzu’s ambitious development agenda, especially for infrastructure investments in connectivity projects and renewable energy.

The Maldives foreign minister also met with the chairman of China EXIM Bank Wu Fulin.

Zaneer said he briefed him on the latest fiscal and economic updates and also on the reform programme announced by President Dr Muizzu. He said the discussion was focused on financing key development projects and potential future collaborations.

On Monday, Zameer met his Chinese counterpart Wang Yi and briefed him on the economic and fiscal situation in the Maldives, emphasising the importance of carrying out diligently, the fiscal reforms announced by President Muizzu.

Zameer also requested China’s support in carrying out the reform programme that will foster consumer and investor confidence in the Maldivian economy, thereby positively impacting the island nation’s economic resilience. Foreign Minister Zameer was accompanied by Mohamed Shafeeq, Minister of Finance, Abdulla Muththalib, Minister of Construction and Infrastructure and senior officials.

China has scaled up its relations with Maldives, since Muzzu, widely regarded as a pro-Beijing leader, took over power last year.

During Muizzu’s visit to Beijing, the two countries elevated their ties to a comprehensive strategic cooperative partnership and signed 20 agreements. Since then Maldives permitted China’s ocean research vessels, widely regarded as spy ships to berth in its waters much to the concern of India.

In May, the International Monetary Fund (IMF) warned the Maldives that it faces a high risk of debt distress without significant policy changes. The IMF noted that the Maldives’ current account deficit is expected to remain large and that its overall fiscal deficits and public debt are projected to stay elevated.

Subsequently, the Muizzu government sought restructuring of loans from China. The Maldives’ debt to China reportedly amounted to over USD 1.3 billion.