Velana International Airport development expenditure reaches USD 1.2 billion

A ruling party lawmaker has said that the expenditure of the Velana International Airport (VIA) development project has reached USD 1.2 billion.

Feydhoo constituency MP Ibrahim Didi made this statement while speaking at a pro-government rally in Veymandoo island of Thaa atoll on Friday night, where he noted that the airport is one of the biggest development projects of President Abdulla Yameen’s administration, and that USD 1.2 billion has been spent on the project.

“Velana International Airport will be world-class airport. It is being developed for USD 1.2 billion,” the MP said.

However, it is important to note that while a number of senior government officials have spoken on the airport development previously, their figures have differed each time as well.

They had initially said that the project would take USD 600 million, which later changed to USD 800 million and 1 billion. Now, according to the MP Didi, over 1.2 billion has been spent on the project.

Didi further accused former President Mohamed Nasheed of ‘selling the country’s only international airport’ to India’ GMR, referring to his administration’s decision to handover the airport’s development to the company, for a period of 25 years. While GMR was tasked with completing the project by 2014, for USD 800 million, the company continued to pay taxes and fees to the state.

However, his successor, former President Mohamed Waheed cancelled the contract with GMR, which led to the government being sued USD 400 million. Hence, the state is believed to have spent twice the amount for the development project, a total of USD 1.6 million.

The Velana International Development project is managed solely on loans.