Maldives: Strengthening Fiscal Management and Sustainability Program

approved

The proposed Program (the Program) will provide a results-based financing to support a portion of the defined Government programs. It is designed to enhance the sustainability of the policy actions under the Strengthening Fiscal Management and Sustainability Program (a policy-based grant, or PBG) of the Asian Development Bank (ADB). The proposed Program will support the Government's programs and consist of the following two results areas: Results area 1 (Green Taxation) - This results area will mainly support two Government programs related to green taxation: (i) widening of the coverage of tourism green tax beyond hotels to include integrated resorts etc.; and (ii) levy a tax on plastic bags as part of the commitment to phasing out single-use plastics (SUPs). The tourism Green Tax will exclusively go to the Government-established "Green Fund" which will finance climate-related projects as well as other green projects. Results area 2 (Climate Mitigation and Adaptation) - This Result Area will support Government programs to address climate change, including: (i) increasing the capacity of renewable energy; (ii) establishing new waste management facilities; and (iii) implementation of coastal protection measures in priority islands.