Maldives Airports Company Limited (MACL) has been granted an additional letter of credit facility of MVR 386 million from Bank of Maldives (BML) to ensure the continuity of the project to develop a new passenger terminal at the Velana International Airport.
MACL’s Head of Corporate Communications, Hassan Areef told Sun on Wednesday that the LC was taken through BML because of some delays in payments that may occur due to documentation process from the countries supporting the project, and other such factors.
He stressed it wasn’t a loan.
“The thing with this fund is, we did this to ensure the continuation of this project without any disruptions, because we may not receive the payments in a timely manner,” he said.
The project, which was launched on 2016, had been scheduled to be complete this year. However, various factors, including the COVID-19 pandemic, has resulted in delays in the project.
In a previous interview to Sun, MACL’s spokesperson Shamman Shakir said the terminal was designed with the focus on durability.
He said the terminal will come equipped with a self-check-in system, modern baggage handling system and scanners.
The new passenger terminal, one of the biggest components of the airport development project, was contracted to Saudi Binladin Group during former President Abdulla Yameen Abdul Gayoom’s administration for approximately MVR 5.3 billion.
MACL said the terminal will be financed through a consortium formed between the Saudi Fund for Development, Abu Dhabi Fund for Development, and Kuwait Fund for Arab Economic Development.