Ministry of National Planning, Housing and Infrastructure is accepting proposals for the development of seven domestic airports.
The planning ministry has invited interested parties to submit expressions of interest or proposals for financing the development of the domestic airports under the guidelines on cross-subsidisation of land plots, islands, and lagoons allocated for tourism. The ministry is seeking parties interested in the development of domestic airports in Makunudhoo in Haa Dhaalu Atoll, Bilehfahi in Shaviyani Atoll, Thulhaadhoo in Baa Atoll, Vilufushi in Thaa Atoll, Magoodhoo in Faafu Atoll, and Fohtheyo lagoon in Vaavu Atoll, and south Raa Atoll.
The ministry stated that the minimum amount that can be submitted for financing the development of airports in Makunudhoo, Bileiyfahi, Thulhaadhoo, Vilufushi, Magoodhoo and south Raa Atoll is USD3 million. In addition, the minimum amount that can be submitted for financing Vaavu Atoll Airport at Fohtheyo lagoon is USD5 million. The estimated total development cost for each airport is around USD30-40 million. The development of the airports is part of the government's pledge to establish airports within 30 minutes of every inhabited island in the Maldives.
Cross-subsidisation involves granting a land plot, island, or lagoon to an investor who finances a project aligned with the government's economic or social policies. Leased areas for cross-subsidy require a formal agreement with provisions for government repossession if the lessee fails to fulfill project obligations. The investor's project expenses are subtracted from the land rent. A minimum investment threshold for such projects to qualify for land, island, or lagoon through cross-subsidisation is established annually by Presidential decree.