Villa open to returning Kaadedhdhoo airport to govt, Gasim says
Villa Group was awarded the contract to develop and operate the airport, but no significant progress has been made.
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Villa Group Chairman and Mamingili MP Gasim Ibrahim has stated that he is willing to return GDh. Kaadedhdhoo Airport to the government if it intends to develop the facility.
Villa Group was awarded the contract to develop and operate the airport, but no significant progress has been made, and the airport's condition has deteriorated. The company’s officials were summoned to the Economic Committee of Parliament on Tuesday to discuss the matter.
Gasim stated that Villa Group’s objective is to upgrade the airport to international standards. However, financial constraints, including the country’s credit rating and the company’s financial position, have delayed the project. He added that if the government wishes to take over the airport under reasonable terms, Villa Group would be willing to step aside.
He also mentioned that President Mohamed Muizzu had previously expressed interest in developing Kaadedhdhoo as an international airport. However, he noted that any development project must consider its feasibility and economic viability.
According to Gasim:
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The airport is operating at a loss, generating minimal revenue.
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Half of the revenue is pending, requiring more than MVR 1 million annually to sustain operations.
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Development has been delayed due to government decisions over the years.
During the last presidential election, Gasim had stated that work on the airport would commence within three months. However, at Tuesday's committee meeting, he said delays have resulted from shifting government priorities.
A representative of Villa Air stated that the absence of airports in Thinadhoo and Gaafu Alif atoll has also contributed to the delay. The government is planning to develop an international airport in Villingili, raising concerns about the economic viability of multiple airports in close proximity.
Villa Air officials highlighted:
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Investor confidence was impacted when the government announced plans for new airports in Thinadhoo and Villingili, despite an existing agreement with two investors for Kaadedhdhoo’s development.
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The government’s master plan for airport development in the region became uncertain.
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International airport projects are generally not developed in such close proximity.
Villa Air was originally awarded a 50-year contract to develop and operate Kaadedhdhoo Regional Airport in 2013 during the administration of former President Abdulla Yameen. The company officially began operations in January of that year.
However:
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The government annulled the contract in 2017 and took over the airport.
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In May 2021, the Supreme Court ruled that the contract was unlawfully terminated.
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Following the ruling, the airport was returned to Villa Air.
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