Abu Dhabi Fund for Development (ADFD) has signed an agreement to provide a concessionary loan valued at AED51.4 million ($14 million) to develop a new waste-to-energy plant on Ado Island in the Maldives.

The agreement was signed by Mohammed Saif Al Suwaidi, Director General of ADFD, and Ibrahim Ameer Minister of Finance of Maldives, reported Bahrain News Agency (BNA).

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%, 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.