China has committed to deepening its collaboration with the Maldives in crucial infrastructure and renewable energy projects, marking a significant development in bilateral relations.
The announcement came following a productive meeting between Maldivian Foreign Minister Moosa Zameer and Luo Zhaohui, chairman of the China International Development Cooperation Agency (CIDCA).
During their discussions, held on Tuesday, Zameer expressed satisfaction with the progress made and highlighted the signing of a pivotal Letter of Exchange concerning the feasibility study for the redevelopment of the Malé and Villimalé Roads Project.
This project is a cornerstone of President Mohamed Muizzu’s development agenda and is expected to play a crucial role in enhancing the Maldives’ infrastructure.
The Maldivian Foreign Ministry emphasised the strategic importance of this partnership with CIDCA, focusing on both ongoing initiatives and new opportunities for collaboration.
In addition to the meeting with CIDCA, Zameer also engaged with Jin Liqun, President and Chair of the Board of Directors of the Asian Infrastructure Investment Bank (AIIB).
Zameer lauded the AIIB's support, particularly in advancing the Greater Malé Waste-to-Energy Project, which is pivotal for sustainable development.
The discussions with Jin also explored potential funding avenues for President Muizzu’s ambitious development plan, which includes significant investments in infrastructure connectivity and renewable energy.
Zameer’s visit underscores the Maldives’ efforts to attract international support for its development projects and secure necessary funding.
Further strengthening these ties, Zameer met with Wu Fulin, Chairman of the China EXIM Bank.
The meeting focused on the Maldives’ economic updates and the reform program announced by President Muizzu.
Zameer briefed Wu on the latest fiscal developments and discussed future collaborations, emphasizing the need for financing key development projects.
On Monday, Zameer had a productive discussion with Chinese Foreign Minister Wang Yi, where he provided an overview of the Maldives’ economic and fiscal situation.
Zameer stressed the importance of implementing the fiscal reforms announced by President Muizzu and sought China’s support in this regard.
The aim is to enhance consumer and investor confidence in the Maldivian economy, which is crucial for bolstering economic resilience.
Zameer was accompanied by Mohamed Shafeeq, Minister of Finance, Abdulla Muththalib, Minister of Construction and Infrastructure, and other senior officials, spotlighting the high-level nature of these discussions.
Since President Muizzu, a pro-Beijing leader, assumed office last year, relations between China and the Maldives have significantly expanded.
During Muizzu’s visit to Beijing, the two nations upgraded their relationship to a comprehensive strategic cooperative partnership and signed 20 agreements.
This alignment has included allowing Chinese ocean research vessels, often viewed as spy ships, to dock in Maldivian waters, a move that has raised concerns in India.
The Maldives’ growing reliance on China is evident in the context of its economic challenges.
In May, the International Monetary Fund (IMF) warned that the Maldives faces a high risk of debt distress unless substantial policy adjustments are made. The IMF highlighted the Maldives’ large current account deficit and elevated fiscal deficits and public debt.
In response to these warnings, the Muizzu government has sought to restructure its loans from China, with the Maldives' debt to China reportedly exceeding USD 1.3 billion.
The restructuring talks are a crucial step in managing the country’s financial stability while continuing to leverage China’s support for infrastructure and renewable energy projects.
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