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Hithadhoo Central MP Ahmed Rasheed speaks at a parliament session. Photo/Majlis

Motion calls for privatisation of Addu airport, sea port

The government has said that if there is any attempt to privatise companies at this juncture, it will have to do so at throwaway prices.

15 February 2023

By Mariyam Umna Ismail

A resolution has been moved in the parliament demanding the lease of Addu’s airport and sea port to a private company.

The first cue of the motion moved by South Hithadhoo MP Ahmed Rasheed was delivered at the parliament sitting held on Wednesday.

In the motion, Ahmed Rasheed stated that tourism in Addu area can be developed as a hub including other atolls in the zone by developing Addu Airport and Addu Regional Seaport, and enhancing the airport, seaport and tourism connectivity. Pointing out that a lot of work needs to be done to develop these structures, he said, that there was a possibility of huge cost involved. 

"At a time when the world is recovering from the Covid-19 situation, it is likely that the government will find it difficult to raise funds for these projects," he pointed out in the resolution.

Ahmed Rasheed said that if Addu Airport and Addu Regional Seaport are privatized on the basis of strategic partnership and public-private partnership:

  • The development that the people of Addu are seeking can be brought to the region

  • The government can bring their target development to the region

  • Addu airport and Addu regional seaport will increase the flow of funds to the government

  • Companies will be restructured and efficient with the participation of competent and experienced individuals 

"Therefore, we have moved this resolution under Article 167 of the Parliament, calling for privatisation of Addu Airport, Addu Regional Seaport, whether by strategic partnership and public-private partnership in the most beneficial of these manner," the MP said.

While the current government has tried to privatise state-owned companies, it has decided to put on hold its privatisation policy in view of the slowdown in the economy due to the Russia-Ukraine war. The government has said that if there is any attempt to privatise companies at this juncture, it will have to do so at throwaway prices.

A bid for the development of Addu Gan International Airport, which can serve 1.5 million passengers annually, was opened in October. Though the government had earlier said that the Gan airport development project would begin by the end of last year, it is still in the awarding stage.

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