Infrastructure Minister Abdulla Muththalib has cleared up confusion over the Kaafu Maagiri lagoon chosen for the relocation of the State Trading Organization's (STO) fuel farm from Kaafu Funadhoo.

The location was assumed to be the Maagiri lagoon near the Sheraton resort when the decision was announced by the President's Office yesterday.

Divers and environment protection groups expressed concern as there are seven dive sites rich in marine biodiversity in the area.

Minister Muththalib said the proposed location was the Maagiri lagoon in front of Thilafushi and not the lagoon of the same name near Sheraton.

President Dr. Mohamed Muizzu's administration has decided to make Funadhoo a special economic zone and to set up an international financial center on the island. The fuel farm is to be relocated for the project.

Funadhoo currently has storage capacity for 48,000 tons of diesel and 10,000 tons of petrol.