Submarine Cable Project Stalls Amid Calls for Action on Digital Development
5 އޮކްޓޯބަރު 2026 | ހޯމަ 08:52The 'Ocean Connect' submarine cable project, launched to provide high-speed internet across the Maldives, has come to a complete standstill due to a failure to secure necessary funding. Despite an initial investment of MVR 236 million, the project’s financial instability has sparked significant criticism, with experts warning that the potential sale of these assets to private entities poses a serious threat to national security.
Highlights from the ceremony held to mark the connection of the OCM-IAX submarine cable system to the Maldives. | President's Office
The government is facing criticism over the suspension of an international submarine cable project initiated by the previous administration. Critics allege that the project, which was progressing ahead of schedule, has come to a standstill due to the current government's negligence.
Ahmed Mauroof, the former Under Secretary for Legal Affairs at the President's Office who worked on this initiative during President Ibrahim Mohamed Solih’s administration, stated on X that it is unacceptable to speak of digitalization and modern development while lacking the capacity to complete vital ongoing projects. He further asserted that President Dr. Mohamed Muizzu no longer has the right to speak of "Maldives 2.0" or "Digital Government" after failing to uphold the fundamental foundations of this project.
The 'Ocean Connect' (OCM-IAX) submarine cable project, launched in 2021 under President Ibrahim Mohamed Solih’s administration, was initiated with the objective of providing fast, secure, and affordable internet to the Maldives, while positioning the country as a key telecommunications hub. A primary goal of the project was also to establish data centers and transform the Maldives into a data-exporting nation. However, Mauroof noted that the project is now facing potential failure as the current administration has been unable to meet its financial obligations. He highlighted that this situation has forced the government into a position where it may be compelled to sell off the project's assets to private entities.
Highlights from the ceremony held to mark the connection of the OCM-IAX submarine cable system to the Maldives. | President's Office
He emphasized that allowing such a critical utility to slip from state control into foreign ownership would lead to higher internet costs and hinder the nation's development. Furthermore, he noted that such a move poses a significant threat to national security and sovereignty.
According to the 2023 audit report of the Maldives Fund Management Corporation (MFMC), work on this project has come to a complete standstill due to a failure to secure the necessary funding. Furthermore, a submarine cable valued at $15 million remains stranded and unutilized because the corporation lacks the funds required to make it operational.
Highlights from the ceremony held to mark the connection of the OCM-IAX submarine cable system to the Maldives. | President's Office
The latest audit report released regarding this project reveals significant financial data and highlights the substantial losses incurred by the company.
Key figures from the audit report reveal that a total of MVR 236 million had been spent on the project by the end of 2023. The report highlights that the government alone invested MVR 224.8 million of this total as equity.
The audit report states that although construction of the cable landing station in Hulhumalé has been fully completed under this project, an outstanding payment of MVR 19.9 million owed to the contractor remains unpaid.
Furthermore, it is noted that the government issued sovereign guarantees totaling MVR 115.6 million and USD 7.5 million during 2024. However, the status of these funds and the specific details surrounding these guarantees remain unclear.
The financial standing of the Maldives Fund Management Corporation (MFMC), the lead agency overseeing this project, reveals a significant loss of MVR 41.3 million in 2023 alone. This latest deficit has pushed the company’s total accumulated losses to MVR 94.7 million. Furthermore, the corporation’s outstanding liabilities to various contractors and suppliers have surged to MVR 133.9 million.
Furthermore, while the audit indicates an intention to execute this project in collaboration with other telecom operators, the government has yet to officially disclose any information regarding the matter.
Highlights from the ceremony held to mark the connection of the OCM-IAX submarine cable system to the Maldives. | President's Office
Mauroof described this as the squandering of a golden opportunity to transform the future of the Maldives, turning the project of the century into a massive failure.
