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Maldives: COVID-19 Active Response and Expenditure Support Program

Sovereign (Public) Project | 54189-001 Status: Active

The CARES Program will provide budget support to the government for implementing its countercyclical expenditure program for mitigating the adverse social and economic impact of the COVID-19 pandemic. The government's COVID-19 countercyclical expenditure program of $351 million consists of (i) COVID-19 pandemic response plan targeting the upgrading and provision of health facilities and supplies to support public health ($97 million); (ii) a COVID-19 social protection package for the vulnerable population such as the unemployed, poor and vulnerable households, gender-based violence survivors, and expatriate migrant workers, and subsidies to households on electricity and water bills ($124 million); and (iii) a COVID-19 economic response, providing subsidized working capital to the self-employed and businesses ($130 million).

Project Details

Project Officer
Nakane, Masato South Asia Department Request for information
Country
  • Maldives
Sector
  • Public sector management
 
Project Name COVID-19 Active Response and Expenditure Support Program
Project Number 54189-001
Country Maldives
Project Status Active
Project Type / Modality of Assistance Grant
Loan
Technical Assistance
Source of Funding / Amount
Grant 0710-MLD: COVID-19 Active Response and Expenditure Support Program
concessional ordinary capital resources lending / Asian Development Fund US$ 25.00 million
Loan 3942-MLD: COVID-19 Active Response and Expenditure Support Program
concessional ordinary capital resources lending / Asian Development Fund US$ 25.00 million
TA 6369-MLD: Improved Implementation of the Government's COVID-19 Response Package
Technical Assistance Special Fund US$ 500,000.00
Strategic Agendas Inclusive economic growth
Regional integration
Drivers of Change Gender Equity and Mainstreaming
Governance and capacity development
Sector / Subsector

Health / Disease control of communicable disease - Health system development

Public sector management / Public expenditure and fiscal management - Social protection initiatives

Gender Equity and Mainstreaming Effective gender mainstreaming
Description The CARES Program will provide budget support to the government for implementing its countercyclical expenditure program for mitigating the adverse social and economic impact of the COVID-19 pandemic. The government's COVID-19 countercyclical expenditure program of $351 million consists of (i) COVID-19 pandemic response plan targeting the upgrading and provision of health facilities and supplies to support public health ($97 million); (ii) a COVID-19 social protection package for the vulnerable population such as the unemployed, poor and vulnerable households, gender-based violence survivors, and expatriate migrant workers, and subsidies to households on electricity and water bills ($124 million); and (iii) a COVID-19 economic response, providing subsidized working capital to the self-employed and businesses ($130 million).
Project Rationale and Linkage to Country/Regional Strategy

On 30 January 2020, the World Health Organization (WHO) declared the COVID-19 outbreak a public health emergency of international concern. On 11 March 2020, WHO characterized the COVID-19 outbreak a pandemic. The COVID-19 infection has spread to 216 countries, areas, or territories, with 7,690,708 confirmed global cases and 427,630 deaths as of 14 June 2020. Maldives had 2035 confirmed cases, 1311 recoveries, and eight deaths as of 14 June 2020.

While the public health spending in Maldives is much higher than its South Asian and Southeast Asian peers, the country is deficient in specific health sector capacities needed to contain and manage COVID-19. Moreover, Maldives is highly dependent on tourism - a sector that has been severely impacted due to the pandemic. As a result, the government estimates that GDP growth in 2020 may fall about 19 percentage points from the pre-pandemic estimate of 7.5% to 11.3%. Total government revenues will decline by at least half of the 2020 pre-pandemic estimate. The fiscal deficit in 2020 is estimated to rise to 13.7% of GDP from the pre-pandemic expectation of 6.2%. ADB estimates that up to 15.6% of the workers could lose their jobs, and the $3.2/day IPL poverty headcount ratio could increase more than three times from 0.4% in 2018 to 1.3% in 2020. The foreign exchange reserves may decline to 2.0 months of goods and non-factor services imports from 2.9 months in 2019. Even after expenditure cuts, the fiscal situation is under stress and there is a large unfunded fiscal gap. The CARES Program will provide budget support to the government for its (i) pandemic response, (ii) social protection initiatives for the vulnerable sections affected by the pandemic, and (iii) economic response, providing subsidized working capital to the self-employed and businesses.

Impact Social inclusion promoted and economic resilience improved
Project Outcome
Description of Outcome Adverse socioeconomic effect of COVID-19 for poor and vulnerable groups mitigated
Progress Toward Outcome
Implementation Progress
Description of Project Outputs

COVID-19 health response measures implemented

Social protection measures implemented

Economic assistance measures implemented

COVID-19 response governance mechanisms strengthened

Status of Implementation Progress (Outputs, Activities, and Issues)
Geographical Location Nation-wide
Safeguard Categories
Environment B
Involuntary Resettlement C
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects The installation of the mostly pre-fabricated and temporary housing units for migrant workers may trigger standard construction-related environmental impacts and risks and therefore the program is categorized B for environmental safeguards.
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design
During Project Implementation
Business Opportunities
Consulting Services The TA will hire experts in monitoring and evaluation, environment, gender, and public financial management to support the government in achieving the desired outcomes.
Procurement ADB has been working closely with the Ministry of Health, and in collaboration with WHO and UNICEF, on the procurement of critical medical equipment and supplies.
Responsible ADB Officer Nakane, Masato
Responsible ADB Department South Asia Department
Responsible ADB Division Regional Cooperation and Operations Coordination Div, SARD
Executing Agencies
Ministry of Finance (formerly Ministry of Finance and Treasury)
[email protected]
Ameenee Magu, Block 379, Male', Republic
of Maldives
Timetable
Concept Clearance -
Fact Finding 20 Apr 2020 to 22 Apr 2020
MRM 28 May 2020
Approval 25 Jun 2020
Last Review Mission -
Last PDS Update 30 Jun 2020

Grant 0710-MLD

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
25 Jun 2020 28 Jun 2020 28 Jun 2020 30 Jun 2021 - -
Financing Plan Grant Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 25.00 Cumulative Contract Awards
ADB 25.00 25 Jun 2020 25.00 0.00 100%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 0.00 25 Jun 2020 25.00 0.00 100%

Loan 3942-MLD

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
25 Jun 2020 28 Jun 2020 28 Jun 2020 30 Jun 2021 - -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 25.00 Cumulative Contract Awards
ADB 25.00 25 Jun 2020 25.00 0.00 100%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 0.00 25 Jun 2020 25.00 0.00 100%

TA 6369-MLD

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
25 Jun 2020 15 Jul 2020 15 Jul 2020 30 Jun 2022 - -
Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
500,000.00 0.00 0.00 0.00 0.00 0.00 500,000.00 25 Jun 2020 36,206.31

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Safeguard Documents See also: Safeguards

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Evaluation Documents See also: Independent Evaluation

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Related Publications

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Tenders

Tender Title Type Status Posting Date Deadline
COVID-19 Active Response and Expenditure Support Program - Environment Specialist Individual - Consulting Closed 15 Aug 2020 19 Aug 2020
COVID-19 Active Response and Expenditure Support Program - Environment Specialist (External Monitor) Individual - Consulting Closed 15 Aug 2020 19 Aug 2020
COVID-19 Active Response and Expenditure Support Program - Monitoring and Evaluation Specialist (National) Individual - Consulting Closed 31 Jul 2020 06 Aug 2020
COVID-19 Active Response and Expenditure Support Program - Social Development Specialist Individual - Consulting Closed 23 Jul 2020 29 Jul 2020
COVID-19 Active Response and Expenditure Support Program - Monitoring and Evaluation Specialist (International) Individual - Consulting Closed 23 Jul 2020 29 Jul 2020

Contracts Awarded

No contracts awarded for this project were found

Procurement Plan

None currently available.