Opposition leader Fayyaz Ismail said Monday the Muizzu government has terminated the lease of the Hankede Integrated Tourism Development Project in Addu City, the first confirmation that the much-delayed plan has been scrapped.
In a post on X, Fayyaz said the decision “dashed the hopes of everyone in Addu and the south of Maldives for economic opportunities at home.”
The Hankede project, valued at $142.9 million, was contracted to China National Electrical Engineering Company under the previous Maldivian Democratic Party (MDP) administration. It was financed through a loan from the state-owned Bank of China and inaugurated in March 2023. The project was expected to provide 2,082 tourist beds and create 1,500 jobs for Addu residents.
Fayyaz, who served as Economic Minister when the project was initiated, said the loan agreement was awaiting a final signature when the government changed in November 2023. He blamed what he called the Muizzu administration’s “ineptitude and lack of coherent policies” for delays that culminated in the termination.
He also criticised the government’s plan to convert Hankede into a halal tourism destination. “If the government wanted to develop halal tourism, they could have done so in another island such as Savaaheli or Gaukende without terminating a well-progressed project resulting in hefty compensation and loss of precious time for Addu,” he said.
The Muizzu administration announced in June that Hankede would be included in a wider halal tourism initiative spanning six islands. It has not yet disclosed whether a new investor has been secured or the status of the terminated contract.