China and Maldives Strengthen Collaboration in Infrastructure and Renewable Energy
China has reaffirmed its commitment to enhance collaboration with the Maldives in key infrastructure and renewable energy projects. In a recent meeting between Foreign Minister Moosa Zameer and Luo Zhaohui, Chairman of the China International Development Cooperation Agency (CIDCA), both parties discussed the importance of sustainable development and the role of vital infrastructure initiatives in the island nation.
Letter of Exchange on Redevelopment of Male and Villimale Roads Project
An important outcome of the meeting was the signing of a Letter of Exchange on the feasibility study for the redevelopment of Male and Villimale Roads Project. This project is a central pledge of President Mohamed Muizzu’s administration and emphasizes the Maldives-CIDCA partnership in driving sustainable infrastructure projects. Minister Zameer expressed his satisfaction with this development and highlighted the significance of continuing this positive momentum.
Strong Support from Asian Infrastructure Investment Bank (AIIB)
During his visit, Minister Zameer also met with Jin Liqun, President and Chair of the Board of Directors of the Asian Infrastructure Investment Bank (AIIB). He praised AIIB’s longstanding support, specifically mentioning the Greater Male’ Waste-to-Energy Project. The discussions further explored potential funding avenues for President Muizzu’s ambitious development agenda, focusing on infrastructure investments in connectivity and renewable energy.
Collaboration with China EXIM Bank for Key Development Projects
Minister Zameer had a productive meeting with Wu Fulin, Chairman of China EXIM Bank, where they discussed the latest fiscal and economic updates in the Maldives. The Minister highlighted President Muizzu’s reform program, and the discussions revolved around financing key development projects and identifying potential future collaborations.
Meeting with Chinese Foreign Minister Wang Yi
On a separate occasion, Minister Zameer met with Chinese Foreign Minister Wang Yi to discuss the economic and fiscal situation in the Maldives. Minister Zameer emphasized the importance of effectively implementing President Muizzu’s fiscal reforms and sought China’s support in boosting consumer and investor confidence, thereby enhancing the resilience of the Maldivian economy.
Strengthening Chinese-Maldivian Relations
Since President Muizzu, considered pro-Beijing, assumed power last year, the Maldives has aimed to strengthen its relations with China. During President Muizzu’s visit to Beijing, the two nations elevated their ties to a comprehensive strategic cooperative partnership by signing 20 agreements. The agreements included granting China’s ocean research vessels permission to berth in Maldivian waters. However, this move raised concerns in neighboring India.
Warning from the International Monetary Fund (IMF)
The International Monetary Fund (IMF) has recently warned that the Maldives faces a high risk of debt distress if significant policy changes are not implemented. The IMF noted the large current account deficit, along with the projection of elevated fiscal deficits and public debt. Responding to this concern, the government led by President Muizzu sought to restructure loans from China, given that the Maldives’ debt to China reportedly exceeds $1.3 billion.
China’s commitment to collaborating with the Maldives in infrastructure and renewable energy projects demonstrates its dedication to sustainable development in the island nation. These partnerships will not only contribute to the growth of the Maldivian economy but also enhance long-term bilateral ties between China and the Maldives.
