Maldives and China sign 50 million yuan grant aid agreement

The Maldives and China have signed a grant aid agreement worth 50 million yuan (US$ 8.2 million) last week.

The Agreement on Economic and Technical Cooperation is “for the implementation of developmental projects and the advancement of public services,” the President’s Office has previously said.

The Minister of Foreign Affairs Dunya Maumoon signed the agreement on behalf of the Government of Maldives and Mr. Yu Hongyao signed on behalf of the Government of the People’s Republic of China.

China has also pledged assistance to restore Kaafu Atoll Island Dhiffushi Island School after a fire destroyed the school’s offices in November.

The grant aid comes at a time the Maldives is facing dire economic circumstances, with the government unable to afford its huge recurrent expenditure on a bloated civil service and is failing to pay millions of dollars owed to state-owned companies for services such as oil and electricity.