Villa agrees to hand over Kaadedhdhoo airport to govt

Villa has agreed to transfer GDh. Kaadedhdhoo Airport to the government after accepting the state’s counter-offer.

The decision follows discussions between the government and Villa regarding President Mohamed Muizzu’s pledge to establish an international airport in Gaafu Dhaalu Atoll.

Villa had initially sought USD 21 million in compensation for handing over the airport. The government instead offered USD 18 million (MVR 277 million) or an 18-month tax adjustment for Villa companies.

Villa confirmed acceptance of the counter-offer in a statement on Saturday but did not specify which of the two options it had chosen.

According to the statement, Villa’s proposal to transfer the airport was based on the investments made in its operation, the costs incurred, and the work completed to date. The company said the transfer would enable the government to fulfil its pledge to develop the airport at the earliest opportunity.

Villa Air was awarded the contract to develop and operate Kaadedhdhoo Airport in 2013 under former President Abdulla Yameen’s administration. Operations formally began in January of that year.

The government annulled the contract in 2017 and reclaimed the airport. In May 2021, the Supreme Court ruled the annulment unlawful, and the airport was handed back to Villa Air.

Although Villa was awarded the contract to expand and operate the airport, development work has not progressed, and the facility has fallen into disrepair.