The Indian government has raised the issue of Uthuru Thila Falhu (UTF), which was given to a Chinese company for an agricultural project, during the discussions for the rollover of a USD 50 million (MVR 770 million) loan due today.
The former government had awarded India the construction of a port for the Maldives National Defense Force (MNDF) at UTF. But the government of President Dr. Mohamed Muizzu awarded a contract to a Chinese company for a large-scale agricultural project at UTF in March this year.
Indian media earlier reported that India had concerns over the handover of the UTF to China. A source with information on the matter told Adhadhu that Indian government representatives have officially raised the issue during discussions for the rollover of a USD 50 million loan due today.
China Harbor Engineering Company Limited was awarded the contract to reclaim the land in UTF and carry out the agricultural project. The project will include land reclamation, primary infrastructure development, an agricultural industrial park and passenger and freight terminals.
However, the agreement states that the UTF or another land or lagoon can be provided for the project.
Adhadhu understands that the discussions on rolling over the loan were ongoing in a way that is favourable to the Maldives government and that the Indian government is ready for the rollover. An official from the Foreign Ministry said the decision is expected to be announced this evening.
Maldives will face challenges in repaying the debt, due to the current financial situation, if the rollover is not approved.
Meanwhile, the government announced earlier this month that President Muizzu would visit India soon. Bloomberg reported that financial assistance will be one of the key topics during the President's first official visit to India.
