A project to reclaim 104 hectares and create 16 islands in the Kaafu Gaafaru lagoon was awarded on Wednesday to Atoll Works Pvt Ltd for over MVR 562 million.
The artificial islands to be reclaimed from the lagoon are to be developed as 14 private islands and two luxury resorts. The project was awarded by the Maldives Fund Management Corporation (MFMC). Managing Director Ahmed Nazim signed the agreement on behalf of the company.
Gaafaru was placed under MFMC in 2021.
The reclamation of the Gaafaru lagoon for the development of an integrated tourism zone was contracted for a total of MVR 562,889,567. The cost covers reclamation work in addition to shore protection.
About 3.7 million cubic meters of sand will be needed for the Gaafaru lagoon reclamation. The dredging and reclamation will cost USD 29,232,774 with the rest to be spent on revetments.
Gaafaru lagoon. -- Photo: NASA
The Gaafaru lagoon reclamation is to be carried out on a contractor finance basis. MFMC will not have to make advance payments for the project, the company said. The contractor will be paid through income earned from leasing the islands.
"It has been arranged for MFMC to repay the contractor for the cost of the project by earning an income from the sale of the islands through long-term leases after the reclamation of the islands is completed," the company said in a statement.
It is the first project that involves the creation of multiple islands as well as the development of private islands for long-term leasing, MFMC said.
"This is the first project devised for the sale of private islands on a long-term lease basis with the development of private islands under an integrated tourism development concept initiated by the Maldives government," the statement read. "This massive project will become the first project where this many islands will be reclaimed in one lagoon in Kaafu atoll."
