ADB approves $50 million emergency loan to help Maldives cover fuel imports

The Asian Development Bank has approved a $50 million (MVR 772.5 million) emergency loan to help the Maldives keep importing fuel and maintain electricity, water, and other essential services, the bank said.

The loan, issued under ADB's Energy Security Emergency Assistance Project, will fund diesel imports for power and water production, according to the bank. It will also cover logistics for shipping food and medical supplies, inter-atoll transport, and waste management operations.

ADB said the war in the Middle East has pushed up oil prices and reduced the number of tourists visiting the Maldives, weakening the government's financial capacity to pay for fuel imports.

The Maldives imports nearly all of its fuel. Diesel accounts for 94% of the country's electricity generation, according to ADB.

Second loan this year

The ADB loan follows a separate $40 million allocation by the World Bank in May, drawn from funds already committed to its ongoing Maldives projects and redirected toward fuel imports. Combined, the two institutions have now committed $90 million to help the Maldives manage rising energy costs.

Both loans were arranged after fighting in the Middle East intensified earlier this year, driving up the cost of importing oil to the Maldives.

Government figures show sharp cost increase

Figures released by the government in May showed the monthly cost of fuel imports had risen to $116 million because of the war, up from roughly $50 million a month previously.

The Environment Ministry said at the time that monthly fuel expenditure had increased by about 110%. The ministry said the Maldives needs approximately 8,000 barrels of diesel a day, or about 2.9 million barrels a year, to generate electricity nationwide. The country spent roughly MVR 10 billion on fuel purchases last year, according to the ministry.

Import data for the first quarter of this year points to a continued rise in costs. Between January and March, the Maldives spent $240 million (MVR 3.7 billion) on fuel imports, according to government statistics, up about 50% from the $161 million (MVR 2.5 billion) spent over the same period last year.

Diesel imports alone cost $171 million in the first three months of the year, compared with $116 million during the same period in 2025. Petrol imports more than doubled, rising from $22 million to $48 million.