Adhadhu has learnt that the board of directors of the Maldives Airports Company Limited (MACL) approved the hiring of a dredger at an exorbitant rate to reclaim land for five airport projects.
A whistleblower told Adhadhu on condition of anonymity that the dredger is being leased for USD 50 million (MVR 771 million). This is more than the USD 31.8 million (MVR 490 million) spent on the Mahaa Jarraafu, the largest dredger in the region, acquired by Maldives Transport and Contracting Company (MTCC).
The dredger, according to confidential sources, is the Filippo Brunelleschi, which was previously hired to accelerate the speed of MTCC projects. The company's former Managing Director Adam Azim earlier said it can reclaim one hectare of land per day. The dredger is currently docked in Dubai.
In addition to hiring the dredger at an exorbitant rate, sand extraction and bund wall construction works were also awarded at high prices. The sand extraction alone will cost about MVR 50 million.
MACL could not be reached for comment.
MACL was awarded the airport projects in Haa Dhaal Makunudhoo, Raa Fainu, Alif Alif Mathiveri, Thaa Vilufushi and Thaa Guraidhoo. The projects should be financed by the company. This means MACL will bear the financial burden, without the government spending from the state budget.
This change in awarding project was introduced after the government failed to secure funding for the public sector infrastructure program. Most of the airport projects were listed under PSIP for the state budget. Both the current and previous government planned to choose a cross-subsidy model to develop these airports.
MACL is one of the most profitable state-owned enterprises (SOEs) and is among the few SOEs that generates substantial revenue from dollars. The company posted a net profit of MVR 1 billion last year.
Although the company's financial position is good, the loans taken to develop the runway and terminals of Velana International Airport (VIA) are under MACL's name. At the end of last year, the debt stood at MVR 13.4 billion.
The company recently took over nine airports that were operating at a loss. Given the government's financial situation, it is believed that MACL will be responsible for any debt owed by the airports and the Regional Airports Company Limited (RACL) which operated the airports.
In addition, MACL has been awarded the contract to construct fitness and recreation centers and sports complexes in 63 islands. Under the agreement, the government must repay MACL once these projects are completed, but the company has to bear the initial financial burden to implement the projects.
