A mega agricultural project awarded to a Chinese company has been shifted to Rasmale' from Uthuru Thila Falhu (UTF) where India is working to establish a military port.

Maldives Industrial Development (MID) Free Zone signed an MoU with China Harbor Engineering Company Limited on March 28 to implement the project. Economic Minister Mohamed Saeed declared on August 25 that work on the project will start in December.

MID Free Zone Company is a joint venture of several government companies. They include State Trading Organization (STO), Maldives Airport Company Limited (MACL), Maldives Ports Limited (MPL), Maldives Transport and Contracting Company (MTCC) and Housing Development Corporation (HDC). STO Managing Director Shimad Ibrahim leads the company.

Shimad announced the decision to shift the project to Fushi Dhiggaru lagoon in an interview with Dhauru last week. He said the project was delayed due to the unavailability of land.

However, the government had previously claimed land had been allocated for the project at Uthuru Thila Falhu. The MoU was also signed to reclaim the lagoon for the project.

"Fushi Dhiggaru lagoon has been officially allocated for the project. The feasibility, environmental impact assessment and planning stages are underway. Work will start very soon," Shimad said in the interview.

He did not respond to phone calls for further details. So it is not yet clear whether the land for the agricultural project will be allocated from the land reclaimed for Rasmale' or by reclaiming additional land from the lagoon.

A land reclamation project was launched in December 2023 to develop Fushi Dhiggaru lagoon as Rasmale'. However, the government's plans have failed and not even 50 hectares out of the targeted 1100 hectares have been reclaimed over the past year. The government previously said 200 hectares are needed for the agricultural project.

At the time, the government said the project included land reclamation, primary infrastructure development, opening an agricultural industrial park and passenger and freight terminals.

STO earlier said special areas for growing vegetables and fruits and an area for human resource development in the agricultural sector will be established at the agricultural special economic zone.