Adhadhu has learnt that the project to develop Hankede in Addu city under an integrated tourism concept remains halted due to a lack of funds two years after contracting a Chinese company.
Sources told Adhadhu that funding for the project will be arranged through loans. But funds have not been arranged since Chinese banks hesitate to issue loans as Maldives has requested to refinance loans.
China National Electrical Engineering Company (CNEEC) was awarded the contract to develop Hankede under the integrated tourism concept by the former administration with a USD 142.9 million (MVR 2.3 billion) loan from the Bank of China.
However, the only work done so far is clearing the project site.
But the government held a ceremony in February to inaugurate the project work. Home Minister Ali Ihusaan, Maldives Fund Management Corporation (MFMC) Managing Director Ahmed Nazim Abubaukuru and a representative of CNEEC inaugurated the project.
On December 2, 2021, the former administration designated Hankede as an area for real estate tourism projects to increase tourism revenue.
Under the project, 2082 tourist accommodation facilities will be built in the area:
- Two grand hotels - 600 beds
- Two deluxe hotels - 320 beds
- Eight boutique hotels - 560 beds
- Eight serviced apartments - 560 beds
- Eight beach villas, two bedrooms - 32 beds
- Nine beach villas, four bedrooms - 72 beds
MFMC estimates that the project will create 1,500 jobs in Addu and the project is aimed at 25,000 tourists.
Although work has not started, Dubai's TIME Hotels and Conduit House have been awarded the contract to manage the hotels.
The opposition Maldivian Democratic Party (MDP) earlier expressed concern over the project delay and called for work to begin as soon as possible.
The former MDP administration reclaimed five islands and worked to develop the Addu airport to promote tourism in the southernmost city.
