The Abu Dhabi Fund for Development (ADFD) extended USD 79.8 million (MVR 1.2 billion) loan to the Maldives to accelerate the Velana International Airport (VIA) project.
According to the transitional committee’s spokesperson Mohamed Firzul Abdulla Haleel, the funding was obtained by President-elect Dr. Mohamed Muizzu during his recent unofficial visit to the United Arab Emirates (UAE).
At the press conference, Firzul highlighted the importance of the airport for the overall economy, and added it remains a top priority for the President-elect.
“The project’s actual cost surpasses the initial allocation, necessitating an additional USD 79.8 millino for its completion… during the private trip to UAE, a request has been made to the UAE government to provide these funds through their Abu Dhabi Fund,” Firzul said.
The President-elect, set to assume office on November 17, aims to open the airport within his first eight months in office.
Following the ADFD-provided near USD 80 million, the Maldives government has allocated MVR 1 billion in the 2024 state budget for Velana International Airport. In the upcoming year’s budget, 12% of the expenditure on economic and industrial development will be dedicated to the airport.
From the total MVR 1 billion, MVR 666 million has yet to be received. Meanwhile, contributions have also come from Saudi Fund (MVR 185 million), the Kuwait Fund (MVR 149 million), and the OPEC Fund (MVR 37 million). ADFD has also pledged another MVR 18 million for 2024.
In October 2022, the Saudi Fund additionally pledged USD 100 million (MVR 1.5 million) for the airport project.
The Maldives government awarded the construction of the new terminal to Saudi’s Bin Ladin Group in 2016. With a terminal covering almost 78,000 square meters, the entire project costs an estimated total of MVR 5.5 billion.