Reclamation of Area E has begun under the Thilafushi Phase II development project. Housing Development Corporation (HDC) has stated that 5.9 hectares will be reclaimed in Area E within 25 days.
China-based Harbour Engineering Company Limited began the reclamation operations of an area spanning 40 hectares in March 2023 as part of the project to develop Thilafushi in Kaafu Atoll, as an industrial hub. The dredging operations are split into different areas and operations have currently been completed in Areas C, D, and B. A total of 39.6 hectares has been reclaimed in Area B while the reclamation of 71.5 hectares in Area A will be completed by February.
HDC plans to reclaim 150 hectares and open 60% of the land plots to businesses as part of the Thilafushi Master Plan. The Thilafushi lagoon was first reclaimed in 1991 and made into a waste management site and has since been repeatedly reclaimed to increase its land area to 100 hectares. The last reclamation project in 2016 added 22 hectares. A large part of Thilafalhu has still not been reclaimed and the government has decided to make the area an industrial hub.
HDC is undertaking the dredging, reclamation, and shore protection of the area allocated as Thilafushi Phase II. The area will be distributed into six different zones, including zones for major and minor industrial works. An area will also be allocated for the development of a liquified natural gas plant. Other zones will be allocated for mixed offices and small businesses.