The Maldives has signed a $9.7 million (KWD 3 million) loan agreement with the Kuwait Fund for Arab Economic Development (KFAED) to finance the development of Thaa Atoll Hospital in Veymandoo.
The agreement was signed at a ceremony held at the Ministry of Finance and Planning, with Finance Minister Hassan Zareer signing on behalf of the Maldivian government and KFAED Acting Director General Rashaed Al-Bader representing the Kuwaiti fund.
The ceremony was also attended by senior officials from the Ministry of Health, Family and Welfare and KFAED.
Speaking at the ceremony, Zareer thanked Kuwait for its continued support towards the Maldives’ economic and social development. He described the hospital project as an important investment in the health and well-being of Maldivians, stressing that ensuring access to quality healthcare regardless of where people live remains a government priority.
KFAED’s Al-Bader said the agreement marks the fund’s 15th loan to the Maldives and its first investment in the country’s healthcare sector. He expressed confidence that the new hospital would become an important centre providing reliable, quality healthcare services to people across the region.
The project will involve the construction of a modern, four-storey hospital with a capacity of 50 beds, alongside a separate services building. It will include medical equipment, furniture and the necessary facilities to provide secondary healthcare services. Construction is expected to take approximately three years, with completion targeted for the second half of 2029.
The total project cost is estimated at KWD 6.3 million (approximately USD 19.2 million). The Kuwait Fund’s loan will cover around 47.8 per cent of the cost, with the Maldivian government financing the remaining amount and any additional expenses.
The loan has a repayment period of 24 years, including a four-year grace period, and carries an annual interest rate of one per cent, alongside a 0.5 per cent annual administrative fee.
The new hospital is expected to improve access to healthcare for residents of Thaa Atoll and neighbouring communities, reducing the need for patients to travel to Malé or other islands for treatment. It is also expected to reduce reliance on sea and air ambulance transfers and ease pressure on hospitals in the cap
