The government has constituted the board of the Addu Hankede Development Corporation with a majority of members from the Bank of Maldives (BML). The corporation was established to develop Hankede in Addu Atoll under an integrated tourism development model.
President Mohamed Muizzu established the development company last month as a hundred percent state-owned enterprise. But BML holds no shares in the company.
Despite BML having no equity stake in the corporation, the Managing Director and three out of the five board seats have been filled by senior executives from the bank. The remaining two board members are officials from the Ministry of Finance.
The Board of Addu Hankede Development Corporation
- Aishath Zamra Zahir – Managing Director and Board Member [Chief Commercial Officer, BML]
- Abdulla Atheeg Mohamed – Board Member [Economic and Fiscal Policy Analyst, Ministry of Finance]
- Saharu Waheed – Board Member [Deputy Chief Operating Officer and Chief Operating Officer, BML]
- Aman Ali – Board Member [Director of Corporate Banking and Commercial Performance, BML]
- Khadheeja Milha – Board Member [Debt Financing Consultant, Ministry of Finance]
When questioned regarding the relationship between the bank and the corporation, BML stated they had no comment. The Ministry of Finance has yet to respond to inquiries.
A source familiar with the matter informed Adhadhu that this move aligns with a government plan to develop tourism across two regions of the Maldives through BML financing. This strategy was previously alluded to by BML’s CEO and Managing Director, Mohamed Shareef.
In an effort to expand its investments in the tourism sector, BML recently sought to issue a USD 300 million Sukuk. The bank held meetings with investors in Singapore, Hong Kong, and London between April 29 and May 8. The current status of this initiative remains unclear.
While the government is now involving BML to develop Hankede, no physical work has commenced despite various attempts since the current administration took office. This current strategy marks the fourth plan proposed by the government for the site's development.
Initially, the administration decided to proceed with a project contracted during the previous government by the Maldives Fund Management Corporation (MFMC) with the China National Electric Engineering Company (CNEEC). That project was to be funded by a USD 142.9 million loan from the Bank of China.
A high-profile ceremony featuring fireworks was held ahead of the last parliamentary elections to mark the start of physical work under that plan. However, a year later, no progress has been made on-site.
Following a period of inactivity, the government withdrew Hankede from MFMC in June last year, designating it as a zone for "Halal Tourism." Shortly thereafter, this decision was reversed, and the island was re-designated for a tourism real estate development project.
During that period, Muizzu visited Addu and announced that an agreement would soon be signed with a Turkish company to begin work. Despite these claims, the project with the Turkish firm failed to materialise.
In October last year, the government opened a public tender seeking developers for an integrated tourism model. The current plan to develop Hankede through a state-owned corporation was adopted after the government failed to secure a private investor.
As the delays persist, Tourism Minister Mohamed Ameen said in June that a detailed development plan for Hankede would be announced very soon. Two months have passed since that statement, yet the plan has not been made public.
In addition to Hankede, the government has announced an ambitious "Addu Asseyri Tourism Development Plan," aiming to develop 6,000 beds and create 10,000 jobs in Addu City. The plan includes the establishment of a seaplane hub, cultural villages, wellness zones, marine protected areas, and a hospitality school.
The Addu Asseyri Tourism Plan was unveiled as part of the administration's first 100-day goals. However, as the government nears the midpoint of its term, work on a single bed under the project has yet to begin.
