The Saudi Fund for Development (SFD) has signed an agreement to provide an additional US$17 million loan to the Maldives for the ongoing development of a new terminal at Velana International Airport (VIA), the country’s main gateway.
The SAR 63.7 million loan agreement was signed on Monday at the President’s Office in Malé, in the presence of President Mohamed Muizzu. Finance Minister Moosa Zameer signed on behalf of the Maldivian government, while the Saudi Fund’s CEO Sultan Abdulrahman Al-Murshad, who is on a three-day visit to the Maldives, represented the fund.
According to the Finance Ministry, the supplementary financing will help expedite the completion of the terminal, which is expected to significantly expand passenger handling capacity and contribute to key economic sectors including tourism, trade and transport.
“With the completion of the project, the Maldives will also have numerous economic benefits, such as accommodating more tourists and airlines,” the ministry said in a statement. “This will bring significant boosts to the tourism industry, which accounts for a major portion of the national product.”
The Saudi Fund had previously extended US$200 million in loans for the airport expansion project. With the latest US$17 million agreement signed on Monday, its total lending to the project now stands at US$217 million (MVR 3.3 billion). This includes a US$100 million loan issued in 2016 and another US$100 million provided in May last year.
Other lenders supporting the project include the Abu Dhabi Fund, which has provided US$90 million; the OPEC Fund and the Kuwait Fund, each contributing US$50 million; and China Exim Bank, which has extended US$373.9 million.
The $350 million terminal project was handed over to Saudi Binladin Group (SBG) in May 2016. The company has contracted China Harbor Engineering Company (CHEC) to carry out construction.
Once completed, the new terminal will have the capacity to serve 7.5 million passengers annually. It will feature 40 departure gates, 38 immigration counters, and multiple aerobridges for efficient passenger boarding and disembarkation.