The Maldives Airports Company Limited (MACL), which operates Velana International Airport (VIA), has taken large loans by mortgaging the leasehold rights of Hulhulé's high-value land, according to the company's audit report.
The 2025 audit report also states that the subsidiary company, Marine and Integrated Infrastructure Development (MIID), established to execute the government's massive land reclamation projects, has assumed billions of Rufiyaa in debt and financial obligations within a short period.
According to the audit report released by the Auditor General's Office, major changes occurred in MACL's financial position due to large loans taken to develop airport infrastructure and the transfer of national-level land reclamation agreements under MACL.
The value of the right to use Hulhulé land, included in the company's accounts as a government grant, rises to over MVR 7 billion.
In addition to VIA's runway and terminal, many areas of Hulhulé have been leased to various parties on a commercial basis. These include the seaplane terminal area, duty-free shops, cargo warehouses, as well as areas containing catering and the fuel farm.
According to the audit report, the value of MACL's Property, Plant and Equipment (PPE) and ongoing projects increased from MVR 20.37 billion to MVR 23.6 billion. This represents a proportion of approximately 59 percent to 65 percent of the company's total assets.
MACL has taken large loans from foreign financial institutions for major infrastructure development works such as the airport's new terminal, new runway, and fuel storage system.
The audit report highlighted that the company's total debt has reached MVR 16.64 billion.
Submitted as the main guarantee for these loans are the leasehold rights of Hulhulé land and all existing and future buildings and infrastructure constructed on that land. In addition, state sovereign guarantees were also provided for these loans through the Ministry of Finance.
Another point highlighted in the audit report is the role of MACL's subsidiary company, MIID, which was established on September 18, 2025.
It is a company created to carry out major government projects such as the reclamation of Giraavarufalhu.
Transferring the agreements made with Capital Marine and Civil Construction (CMCC), which was initially contracted to reclaim the lagoon, MIID assumed responsibility for those works.
Accordingly, MVR 1.76 billion was included in MIID's balance sheet under ongoing projects.
Since the price of land reclamation work consists of areas and development rights from the reclaimed land rather than cash, MVR 161.15 million was recorded as contract assets for which value has not been received. With this, the total value of the company's assets reaches MVR 1.95 billion.
Among the obligations assumed by MIID, the amount payable to contractors and dredging companies reached MVR 1.47 billion.
To arrange funding required for the Giraavarufalhu reclamation project, the government issued an off-budget loan of MVR 650.7 million through MACL.
The audit report warns that, in addition to mortgaging Hulhulé land; a vital asset of the Maldivian economy, and its leasehold rights to secure substantial loans, MACL's billions of rufiyaa in financial obligations arising from major land reclamation projects could expose both the company and the state to significant financial risks in the future.
