Saudi Arabia has agreed to provide USD 150 million (MVR 2.3 billion) to develop the Velana International Airport and build hospitals across the country upon a request from President Ibrahim Mohamed Solih.
The assistance was arranged after discussions held during Solih's meeting with the Saudi Minister of Commerce during his visit to Saudi Arabia last year.
The Saudi Embassy in Maldives confirmed to Adhadhu that the money will be provided through the Saudi fund. A senior official of the Finance Ministry told Adhadhu that the agreement will be signed very soon.
USD 100 million will be spent on the development of the Velana airport by the Saudi Bin Laden Group. The remaining USD 50 million will be invested in the health sector. It is understood that the government plans to spend the money on building hospitals.
The Arab Coordination Group which works to assist Maldives played an important role in securing the USD 100 million for airport development.
In 2016, former President Abdulla Yameen's government launched the airport terminal project at a cost of USD 300 million (MVR 4.6 billion) over four years.
However, the project passed the deadline and expenses rose, forcing the government to take a USD 48.8 million loan from the Kuwait Fund in 2021.
The government has so far borrowed USD 99.8 million from the Saudi Fund, USD 97.6 million from the Kuwait Fund, USD 50 million from the OPEC Fund and USD 50 million from the Abu Dhabi Fund for the project, according to finance data.
A new runway and a new seaplane terminal have been developed at the airport, but the new terminal has not been completed. Most of the terminal structural work is now complete.
