Govt. seeks funds to internationalize Madivaru Airport

The government is seeking finances to redevelop Madivaru Airport in Faadhippolhu Atoll as an international airport on a cross-subsidy basis.

The announcement was made in a signed directive by President Ibrahim Mohamed Solih publicized on Thursday. Cross subsidization is the practice of funding a project with the finances generated by a different project, a policy that has been utilized by the current administration to manage state finances. In implementation of the policy, the government awards island, lagoon, or land for tourism development in exchange for project financing.

Minimum financing for Madivaru airport has been set at MVR 77 million.

Madivaru Airport, developed by Kuredhdhoo Holdings, is managed by Island Aviation Services Limited. The agreement for the airport development project was signed by the government on May 29, 2018. The physical work on the airport was carried out by China’s BUCG company.

Under the project, a runway measuring 1,200 meters, a vehicle parking zone, a fire building, and a modern terminal were constructed.