The Edition


Maldives issues Sovereign Guarantee for five airports project

Fathmath Shaahunaz
09 March 2017, MVT 13:06
Gryphon Energy awarded with Airport construction of five Islands PHOTO:Mihaaru
Fathmath Shaahunaz
09 March 2017, MVT 13:06

The Maldives government issued a Sovereign Guarantee for the loan taken by Gryphon Energy of Malaysia to develop airports in five islands of the Maldives.

The project was awarded to the Malaysian firm on Tuesday. It comprises construction of airports in Haa Dhaal atoll Kulhudhuffushi island, Shaviyani atoll Funadhoo island, Faafu atoll Nilandhoo island, Gaafu Dhaal atoll Maavaarulu island and Gaafu Dhaal atoll Faresmaathoda island, amounting to a total of USD 57.7 million (MVR 889 million).

Mihaaru understands that the government issued the Sovereign Guarantee for the loan taken by Gryphon Energy in accordance with their contract.

The current Public Finance Act states that the government is not obligated to submit Sovereign Guarantees to the parliament for approval prior to being issued. Nonetheless, the state is mandated to forward the documentations on the guarantee to the parliament for the members’ information.

It is yet unclear whether the government has informed the parliament of the Sovereign Guarantee issued to Gryphon or not.

The state had also recently issued a Sovereign Guarantee to the contractor of a state housing project.

According to sources, the five new airports will each feature a runway measuring 1,200 metres that can accommodate Dash 8 aircrafts.

Meanwhile, the government announced Wednesday that airports will also be developed in Meemu atoll, and Lhaviyani atoll Felivaru island.