An additional loan agreement of USD 17 million has been signed for the development of Velana International Airport (VIA).

The signing ceremony for the second additional loan agreement of the Velana International Airport Expansion Project between the Maldivian government and the Saudi Fund for Development was held on Monday morning at the President's Office.

The additional financing for this project is set at 63,750,000 Saudi Riyals.

Minister of Finance and Planning, Moosa Zameer, signed the agreement on behalf of the Maldivian government. The Chief Executive Officer of the Saudi Fund, Sultan bin Abdulrahman Al-Marshad, signed on behalf of the Saudi Fund.

In addition to this, last May, a loan of USD 100 million was provided to complete the new terminal when additional funds were needed. In 2016, the Saudi Fund had also provided a loan of USD 100 million.

The President's Office stated that the additional financial assistance secured for the Velana International Airport development project will serve as an added impetus to complete the initiative as soon as possible. After the project wraps up, the Maldives will also reap numerous economic benefits.

As such, it will provide more space for tourists and additional airlines, leading to further advancements in tourism, business, and transportation-related economic development sectors. The President's Office stated that this will result in significant progress for the tourism industry, which plays the most crucial role in the national productivity.