Gov’t secures extra USD 40m loan to complete airport terminal

The government has secured a loan of USD 40 million from the Abu Dhabi Fund for Development (ADFD) to complete the final works of the project to modernize Velana International Airport (VIA).

The Abu Dhabi Development Fund (ADFD) has announced that it will provide an additional loan of USD 40 million to continue the development work of the Maldives' main airport, Velana International Airport (VIA).

This loan comes after the USD 50 million loan provided by ADFD for the first phase of the project back in 2017, which highlights the importance of the airport.

The work on VIA's new terminal is part of the project to develop VIA that was initiated during former President Abdulla Yameen Abdul Gayoom's tenure. It is estimated that when the terminal work is completed, it will be able to serve 7.5 million passengers annually. The government's goal is to complete the new terminal work and begin services by mid-next year.

Two additional loans were secured previously to accelerate the work on the new terminal being developed at VIA, with USD 180 million from the Saudi Fund for Development (Saudi Fund) and USD 50 million from the Abu Dhabi Fund.

According to the Ministry of Finance and Planning, Minister of Finance and Planning Moosa Zameer recently signed this loan agreement worth approximately MVR 616 million. Director General Mohammed Saif Al Suwaidi signed on behalf of ADFD.

Regarding the agreement, Zameer said that the VIA development project is a project that will pave the way for achieving the national development goals. The project will increase revenue from the tourism industry.

The minister expressed gratitude to the United Arab Emirates (UAE) and especially the Abu Dhabi Fund for the assistance they have been providing for the development of the Maldives.

Minister Zameer noted that this is a significant step towards establishing a modern international airport with world-class facilities and that it aligns with the national goals of increasing tourism revenue in the Maldives, improving travel experience, and promoting sustainable development.

The Director General of ADFD said that this agreement further demonstrates the role the fund plays in the urban development of friendly countries. He noted that the modernization of VIA's terminal is a major advancement for the Maldives. He also said that with this project, the capacity to cater to the demand in the Maldives' tourism industry will increase.

The fund is a fund managed by the royal family of Abu Dhabi, associated with the Abu Dhabi government. The purpose of the fund is to provide soft loans for sustainable development projects, conduct long-term investments, and assist emerging countries.

ADFD has been an active partner in the development of the Maldives since 1976. In this regard, it has funded important projects in the areas of transportation, energy, tourism and housing. These investments have improved the living standards of island communities and increased the country's economic well-being.

The new terminal is 78,000 acres in size. This project is expected to greatly increase the service capacity of VIA. The current international terminal serves 1.5 million passengers annually. However, the new terminal is designed to serve seven million passengers every year.

The newly constructed terminal will feature modern facilities including aero boarding bridges and state-of-the-art baggage handling systems. The space issues in the current terminal will be resolved, and there will be additional space for food and beverage outlets, shops, lounges and other passenger services.

With the opening of the new terminal, it is hoped that the overall experience for passengers will improve, helping the Maldives to continue as an advancing country in the world's tourism center.

This entire project is something that will bring significant progress to the tourism sector of the archipelago nation. The new terminal will increase the number of tourists Maldives attracts and improve the quality of service they receive. In addition to this, the project will create several job opportunities and solidify the country's economy.

The additional USD 40 million loan provided by the Abu Dhabi Development Fund for this project is something that will further strengthen the friendly relationship between the Maldives and the UAE as well. Further, this is an important example of the assistance provided by foreign countries for the development of the Maldives.

The project is crucial for the future of Maldives, providing a significant boost to the country’s economic growth. Upon its completion, Maldives is set to solidify its position as a leading global tourism destination.

Maldives Airports Company Limited (MACL) earlier stated that with the new terminal, the number of airlines traveling to the Maldives from various destinations around the world will increase as well.