Maldives to provide sovereign guarantees to private sector infrastructure projects

The Maldives will issue soverign guarantees to infrastructure development projects funded by private sector, after a Cabinet meeting yesterday finalising the mechanisms to be used.

The Ministry of Finance and Treasury proposed a limit of Rf 125 million (US$9.7 million) annually to support the private sector to raise funds as part of the government’s policy to increase private sector participation in national development. This would not be issued to individuals.

Cabinet decided yesterday that when a project involves expenditure not included in the budget or approved by the People’s Majlis, the President would send the project for Majlis’ consent on issuing a sovereign guarantee.

Cabinet also decided yesterday to establish a National Food and Nutrition Council, that would oversee food and nutrition policy, and approved the Maldives’ participation in the International Organisation for Migration (IOM).

Cabinet has

The Cabinet finalized mechanisms to issue sovereign guarantees yesterday, in accordance with the Public Finance Act, to infrastructure development projects funded by the private sector.

The paper presented at yesterday’s cabinet meeting, by the Ministry of Finance and Treasury, on the matter proposed to issue Guarantees to a limit of Rf125 million annually, to help the private sector to raise funds as part of the government’s policy to increase private sector participation in national development.

However, this Guarantee will not be issued to individuals operating in the private sector.

The Cabinet agreed that, if a project involves an item included in the budget or an expense approved by the Parliament, the President would decide on issuing a Guarantee after the Minister of Finance and Treasury presents the project with recommendations.

However, the Cabinet decided that, when a project involves expenditure not included in the budget or approved by the parliament, the President would send the project for Parliamentary approval over issuance of a sovereign guarantee.

At yesterday’s meeting, the Cabinet also decided to establish a National Food and Nutrition Council.

The proposed National Food and Nutrition Council will oversee food and nutrition policy making and implementation of programmes, to ensure inclusion of all stakeholders in these processes to realize national targets for food security and nutrition.

The council, to be headed by Vice President Dr. Mohamed Waheed Hassan Manik, will include policy makers from the relevant authorities.

In addition, the Cabinet approved the Maldives’ participation in the International Organization for Migration (IOM), today.

The Ministry of Foreign Affairs is to complete necessary arrangements for the Maldives’ participation in the organization.

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