The development of an international airport in Gaaf Alif Villingili along with an integrated tourism zone was initially proposed by a joint venture formed between the NV Besix company contracted for the project and local businessman Mohamed Ali Janah, Adhadhu has learned.
According to documents obtained by Adhadhu, a proposal for the Villingili airport project was submitted under regulations enacted by the previous government for unsolicited proposals - which was repealed by the current government - on July 13, 2023.
NV Besix and Janah jointly proposed:
- Developing an airport in Villingili with a 2.2 kilometer runway to serve domestic and international flights and equipped to provide all services
- Developing a transit hotel and commercial facilities in the airport area
- Two lagoons near Villingili to carry out an integrated tourism project in return for the investment
The cost of developing the airport was estimated to be USD 65 million. The integrated tourism zone was estimated to cost USD 120 million. The investor pledged to secure all the financing. The government would have to provide 329 hectares of land for the airport and resort hotel in addition to 429 hectares of land for integrated tourism development.
The lagoons were proposed to be handed over under a cross subsidy model. The lease acquisition cost estimated for the tourism area in the combined 754 hectares of the two lagoons and land for the airport was USD 7,375,000.
The previous government’s economic council held a meeting regarding the proposal on July 24 last year. Information obtained about the deliberations at the meeting shows that members considered developing an airport in Villingili to be more feasible than connecting the island via a bridge to the nearby Kooddoo airport.
The economic council’s main concern was the political challenges of developing an airport in Villingili without developing an airport in Thinadhoo. As such, the previous government intended to announce both airport projects at the same time instead of separately.
The economic council considered that developing an airport in Thinadhoo would be more feasible than in Villingili. However, the council was concerned about adverse effects on the loss-making Gan International Airport in Addu city.
The council noted that it would be a short-term challenge and decided that an airport was needed in the medium-term to develop tourism in Huvadhoo atoll. Therefore, the council decided to approve the proposal with the Villingili airport to be upgraded to international status at a later date.
Contrary to the documentation, the current government says the Villingili airport and tourism project is worth USD 750 million. The value is expected to have risen due to the decision to hand over nine islands instead of the two lagoons proposed to the previous government. The government has not disclosed the islands or any further details about the project.
The government says the agreement signed with the company was an “investment appraisal MoU” and that the formal contract would be signed after the appraisal process.
