The Maldives Airports Company Limited (MACL)has taken out a USD 40 million loan from Sri Lankan banks to repay loans taken to develop the new terminal at Velana International Airport (VIA), according to Sri Lankan media reports.
The Daily Financial Times reported that Sri Lanka's NDB Investment Bank was the main provider of the money. Along with NDB, Hatton National Bank, Nations Trust Bank and Habib Bank's Sri Lanka branch participated in the financing.
Sri Lankan newspapers have also shared a photo of NDB officials and MACL officials. However, MACL has not yet commented on the transaction.
While MACL has taken an additional loan to repay the loans taken to build the terminal, loans amounting to USD 390 million were taken to build the terminal. They are:
Saudi Fund for Development [$200 million]
USD 100 million was taken from the Saudi fund twice. The repayment started five years after the date of the first withdrawal. Payments are to be made in 40 years, in February and August of each year.
Abu Dhabi Fund for Arab Economic Development [$90 million]
a USD 50 million and a USD 40 million loan were taken from this fund. The repayment began three years after the date of the first withdrawal. The loan is to be repaid in 24 years. Payments are due in March and September each year.
Kuwait Fund for Arab Economic Development [$50 million]
Repayment for the USD 50 million began four years after the loan was disbursed. The loan has a repayment period of 32 years. Payments are due in January and July of each year.
OPEC Fund for International Development [$50 million]
The repayment for USD 50 million from the OPEC fund began four years after the loan was disbursed. The loan has a repayment period of 28 years. Payments are due in January and July of each year.
Including loans for terminal development, runway, fuel farm, seaplane terminal, cargo terminal and VIP terminal, the value of the airport development loans is USD 812 million (MVR 12.5 billion).
MACL is one of the highest revenue generating and most profitable state-owned companies. The company posted a net profit of MVR 1 billion in 2024.
However, there have been concerns about the financial position of MACL recently due to the establishment of companies outside the company's scope of operations. The biggest concern is that the company is doing land reclamation work.
MACL has established two subsidiaries to reclaim land. The projects being implemented by these companies include the development of Rasmale' and the reclamation of land for the airports entrusted to the company.
MACL has brought in two of the world’s largest dredgers. In addition, Hulhumale' Phase 3 and Giraavaru lagoon are also being reclaimed through MACL companies.
MACL is paying the contractors for these projects. However, the company declined to comment despite repeated requests.
