Chapter 5 | PROJECTS CONTRIBUTING TO THE OPEC FUND’S CLIMATE FINANCE
MALDIVES
Outer Islands Harbors, Water Supply and Sewerage Facilities
Situation Analysis of Climate Impacts
The project’s goal is to improve the living conditions for approximately 20,000 people living on 13 outer islands of the Maldives by providing sustainable access to safe water supply and sanitation services and harbor infrastructure. This will promote health and connectivity, supporting eco- nomic growth and alleviating poverty in the country. The scope of the project includes five components: (i) Water Supply Networks, (ii) Sewerage Network Systems, (iii) Harbor Reconstruction, (iv) Consultancy Services and (v) Project Management.
The Maldives has experienced significant economic success over the past few decades. However, the Maldives is highly vulnerable to climate risks such as sea level rise and warming and climate-related extreme events. The Maldives is recog- nized as highly vulnerable to climate change impacts, rank- ing 45th out of 181 countries on the 2023 ND-GAIN Index. 42 Sea level rise is a significant risk for the country, given the fact that 80 percent of the Maldives’ total land area is less than one meter above sea level. The IPCC estimates that global mean level rise could be in the range of 0.44 to 0.74 meters by the end of the 21st century, with some other studies esti- mating that the sea level could rise even higher. 43 The Maldives is also vulnerable to other climate risks such as temperature rise. The country has already experienced a 0.8°C increase between 1978 and 2018, and future pro- jections under the highest emission pathway suggest that warming could go over 3°C by the 2090s.
Figure 10: Maldives ND-GAIN Index
FUNDING DETAILS:
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• Industry: Water • Total program cost: US$65.25 million • OPEC Fund contribution: US$50 million • Type of financial instrument: Sovereign loan – blended facility • Government contribution: US$15.25 million • OPEC Fund climate finance as percentage: 51.2 percent adaptation finance.
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TIMELINE:
Source: https://gain.nd.edu/our-work/country-index
• The Ministry of Finance and Treasury officially requested a loan from the OPEC Fund in June 2018. • The project is executed over a period of 6 years, starting in Q1/2020 with the engagement of a project management unit and the preparation of detailed designs and is scheduled to close in 2025 with the completion of the civil works.
42 University of Notre Dame (2024). Notre Dame Global Adaptation Initiative. URL: https://gain.nd.edu/our-work/country-index 43 World Bank and ADB (2021). Climate Risk Country Profile: Maldives.
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