India’s AAI begins work on airport expansion project in northern Maldives

A high-level delegation from the Airports Authority of India (AA) has commenced work on the expansion of Hanimaadhoo International Airport, dubbed the largest infrastructure and connectivity project in the north of Maldives.

In a press release following the team’s visit to Maldives this week, the High Commission of India in the Maldives revealed that AAI has commenced work on a Detailed Project Report (DPR) of the airport expansion project, days after India announced USD 250 million as loans to the island nation in support of the Covid-19 recovery efforts.

The team from New Delhi is expected to finish the DPR within two months.

The AAI team met with the Minister of Economic Development, Fayyaz Ismail as well as senior officials of the economic and Transport and Civil Aviation ministries.

The high-level delegation toured Hanimaadhoo for initial surveys and assessments alongside meeting parliamentarians representing northern Maldives, to exchange views regarding the expansion project.

Work on the expansion project is estimated to kick start early 2021 after the final tendering for the project, which will be undertaken by the government of Maldives. This will be done after tender documents are prepared by the EXIM Bank of India and the economic ministry to select the EPC contractor.

India decided to fund the Hanimaadhoo International Airport expansion project under the USD 800 million Line of Credit from EXIM Bank of India following a request from the government of Maldives.

The expansion project includes the extension of the airport runway to 2,200 meters, upgrading of terminals, fuel farms, the cargo terminal and fire station. The project will be the major engine of future development in the north of Maldives and will encourage investments in tourism, infrastructure, fisheries and other sectors, revealed the HCI.

The project is expected to support the establishment of 8,000 beds for tourists in northern Maldives.

Funded under the larger USD 800 million Line of Credit facilitated by the Indian authorities, seven mega infrastructure projects are being undertaken currently, including water and sewerage networks across 34 islands, reclamation and road development in southernmost Addu City, development of Gulhifalhu Port and expansion of MIFCO facilities.

Further, the development of a hospital specialized for the treatment of cancer in Hulhumalé and a cricket stadium in Hulhumalé are also included under the credit line.

Another Line of Credit of USD 400 million and a USD 100 million grant was also extended for the Greater Malé Connectivity Project (GMCP) which will see the islands of Villingili, Gulhifalhu and Thilafushi linked with bridges and causeways.

Work on five of these mega infrastructure projects is expected to kick start by the end of the ongoing year.

Earlier this week, the maiden voyage of the cargo ferry service was launched jointly by Minister of State for Shipping (Independent Charge) of India, Shri Mansukh L. Mandaviya and Minister of Transport and Civil Aviation of the Maldives, Aishath Nahula, virtually. Operated by the Shipping Corporation of India (SCI), the cargo ferry vessel, ‘MCP Linz’ will connect Tuticorin and Cochin ports of India with Kulhudhufushi City and Maldives capital, Malé City. India will subsidize the service at approximately USD three million.

The cargo ferry service is deemed a key instrument to upgrade the trade partnership and liberate logistics on both sides. The service connectivity to the northern port of Kulhudhuffushi will “underpin the economic development” in the north of Maldives and facilitate investments in tourism and other engines of prosperity

It has been described as another commitment delivered by India to connect markets of both countries and unlock trade and investment potential between both countries. India is currently the fourth largest trading partner of the Maldives, having traded for centuries under close historical and cultural ties.