Fayyaz: USD 60B loss incurred due to new terminal development

Main opposition MDP’s chairperson Fayyaz Ismail has critiqued former president Abdulla Yameen Abdul Gayyoom’s decision to develop a new international terminal at Velana International Airport (VIA), citing that the project has resulted in a loss of USD 60 million to the Maldives.

The project to develop the passenger terminal was initiated during former president Abdulla Yameen Abdul Gayoom’s administration. The project continued during former president Ibrahim Mohamed Solih’s administration, with the incumbent administration completing a lot of the work and set to open the terminal on July 26, on Maldives’ 60th Independence Day.

In a People’s National Front (PNF) rally earlier this week, Yameen said that President Muizzu cannot claim even a 10 percent stake in the terminal project. He also alleged that the decision by Solih to add USD 300 million to the project to make modifications to the terminal was a cover for corruption. He further alleged that the USD 300 million was used to ensure MDP’s win in the 2019’s parliamentary election.

Fayyaz, via a post on X, said although the development and management of VIA had already been contracted without the government incurring any costs, nullifying that agreement in a manner that results in losses to the state—while also choosing to take on more loans for the same development—was an irrational and politically motivated decision.

Fayyaz was referring to the development and management of VIA, which was known as Ibrahim Nasir International Airport back then, being contracted to GMR during former president Mohamed Nasheed’s administration.

He underscored that majority of Maldives’ debt accounts for the loans withdrawn in the name of the airport, adding the decision was the most irrational decision taken by a Maldivian leader.

Fayyaz strongly criticized Yameen, stating that the decision has led to the closure of avenues to secure funding for meeting the essential needs of Maldivian citizens.

He stated that, had the Yameen administration avoided taking loans in 2014, the number of tourists visiting the Maldives today would have surpassed four million, and the nation's GDP would have seen a twofold increase.

Fayyaz said a leader’s politically motivated decision has led to the economy suffering a USD 60 billion loss. He emphasized that the person who needs to bear responsibility for this loss is the person “who caused this loss to the nation while presenting himself as an economist”.

“Should this hundred billion dollar loss to the economy and the whole state be celebrated as a success? And today, is it not more important to complete the airport than spend millions of dollars in the name of opening the airport which is not fully complete?” he questioned.

Fayyaz’s remarks come amid strong criticism from the opposition regarding the current administration’s role in completing the new terminal and a debate regarding who deserves credit for the new terminal.

In this regard, former president Mohamed Nasheed has remarked that the new terminal lies not in its appearance, but in its potential to save the Maldives as it faces serious risks of defaulting on its staggering debt.

Meanwhile, President Dr. Mohamed Muizzu slammed efforts to hog all credit for the new terminal as “childish behavior”, adding that all administrations involved in the key project deserve “due credit.”

The new passenger terminal at VIA is large enough to cater to handle up to 7.5 million passengers annually, and is expected to significantly boost tourism.