The project involves erection of a waste to energy plant that would produce around 4MW of energy from heat.

It is estimated to meet 18% of electricity demand in Addu City, Maldives.

The loan agreement was signed by ADFD director general Mohammed Saif Al Suwaidi and Maldives minister of finance and treasury Abdulla Jihad.

Suwaidi said, "The UAE is working through ADFD to promote the widespread deployment of renewable energy towards achieving sustainable economic and social development in emerging economies. This loan agreement with the Government of Maldives will significantly contribute to meeting the electricity needs of large portions of the population of Maldives from clean sources."

"The project will also create hundreds of new jobs in energy and allied sectors. This will in turn help beneficiary countries diversify their economies and expand conventional energy sources," Al Suwaidi said.