Maldives, Saudi discuss Velana International Airport development

Minister of Finance Ibrahim Ameer discussed the development project of Velana International Airport with Saudi Fund for Development (SFD) on Tuesday.

The meeting, which was held at the Finance Ministry, was attended by SFD's Vice-Chairman and Managing Director Dr Khaled bin Sulaiman Alkhudairy.

The ministry is yet to disseminate additional information regarding the discussions.

The project is funded through financial assistance sourced from a consortium between Saudi, Abu Dhabi, United Arab Emirates and Kuwait.

A USD 350 million airport terminal development project was awarded to Saudi Binladin Group (SBG)

The new terminal was initially scheduled to conclude in 2019, but the project came to a halt in 2018.

Moreover, both the group and the Saudi government temporarily ceased financial aid as well.

However, discussions to resume the project and an agreement between SBG and the Saudi government was reached under the current administration of President Ibrahim Mohamed Solih.

The mega-development and expansion project of Velana International Airport, with a cost of around MVR 1 billion, was initiated by the administration of former President Abdulla Yameen Abdul Gayoom. MACL stated that the project will continue according to plan despite the transfer of presidencies in September.

According to local media Mihaaru, following President Solih's rise to power, the designs of the terminal are being altered to accommodate an even larger terminal as per the requirements of the new administration.

The terminal is built on a 78,000 square metre plot of land, south of the current terminal. Maldives Airports Limited (MACL) noted that the terminal will conclude within the year 2022.

In addition to being a key priority for the incumbent, as the airport is directly linked with the country's revenue, the president stated that it is beneficial for the state to complete the project as soon as possible.

Furthermore, as SBG's main shareholders are the Saudi government, President Solih affirmed his beliefs that construction will proceed without coming to a standstill.