According to the Minister of Construction, Housing and Infrastructure, Dr. Abdulla Muththalib, the Maldives government may be looking ahead at paying compensation to Indian developer, Renaatus.
The minister had noted that the development aspects of Gan International Airport has faced significant delays, most notably due to the delays in vacating a particular building and its plot at Gan. The building and its plot in question are located within the allocated project area.
Should the government fail in vacating said property and the premises before April 17th, it may be required to pay compensation to Renaatus as per the original contract agreement.
Minister Muththalib in a post on X said that the plot and the building belongs to Addu International Airport Company, but had been in use by a different party that had refused to vacate the premises despite multiple notices in the past two years.
As of now, the ministry has instructed to exclude said building and its plot from the project’s scope as delays in the initiative due to subsequent delays in vacating this building will result in damages to be paid to Renaatus, which in turn would result in a notable financial loss for the government.
“We acknowledge the grievances of Addu citizens in the matter,” the minister also said in his social media post.
Gan International Airport’s development to modernize the venue and to increase influx of flights, began in 2023 during the administration of former President Ibrahim Mohamed Solih. Renaatus was awarded the development project at a value of MVR 455.8 million.