Funds Disbursed to 14 Parties Approved for RSW Financing: Ministry

The Ministry of Fisheries has announced that funds have been disbursed to 14 parties so far under the second phase of the RSW Financing Facility.

The Fisheries Ministry stated that 59 applications have been received since the introduction of the second phase of the RSW Financing Facility. The Ministry further noted that out of the 21 applications approved for the facility, financing has now been disbursed for 14 applications.

This facility provides financing for the installation of RSW systems on fishing vessels, as well as the purchase of generator sets and solar power panel systems. Under this facility, up to MVR 2,000,000 is disbursed, with a profit rate calculated at 6% per annum. The government covers 35 percent of the cost of items procured under this facility. Financing is provided with a maximum repayment period of 10 years, which includes a 6-month grace period.

The RSW Financing Facility, or Murabaha RSW Financing Facility, is a financing arrangement established jointly by the Fisheries Ministry and the SME Development Finance Corporation (SDFC). It is designed to install RSW systems on vessels under the Islamic Development Bank's (IsDB) "Support People's Livelihoods in the Fishery Sector in Maldives through Sustainable Energy" project.

While it has been decided to install RSW systems on 110 vessels under this facility, fishing vessels measuring 50 feet or more are eligible to apply. The Fisheries Ministry stated that applications can also be submitted under this facility to install RSW systems and generator sets on newly built fishing vessels.