Abu Dhabi Fund gives $40 million loan for Maldives main airport

Abu Dhabi Fund for Development on Wednesday announced an additional loan of Dh147 million ($40 million) to support the completion of the Velana International Airport (VIA) project in the Maldives.

This follows an earlier loan of Dh183.5 million ($50 million) provided in 2017 for the project’s initial phases, highlighting the airport’s vital role in driving tourism, a key pillar of the Maldivian economy.

The Velana International Airport development project will be expanded to accommodate up to 26 gates for passenger access to aircraft, in addition to a building for international flights. The new expansion will accommodate the increase in the total capacity of the airport, which is expected to reach 7.5 million passengers annually.

The financing agreement was signed by Mohamed Saif Al Suwaidi, director-general of ADFD, and Moosa Zameer, Minister of Finance in the Maldives. Several officials from both sides were present at the signing ceremony.

“This funding reflects the critical role of ADFD in driving economic and social development in partner countries through transformative infrastructure projects. The additional support for the modernisation and expansion of the Velana International Airport will promote the Maldives’ growth, as it increases capacity to meet the rising demand from a thriving tourism sector,” Al Suwaidi said.

He added that these efforts align with the Maldivian government’s development objectives.

“ADFD is committed to deepening its partnership with the government of the Maldives, collaborating on impactful initiatives that fulfil the aspirations of the Maldivian people, generate employment opportunities, and drive sustainable development,” he said.

Zameer emphasised the shared commitment to advancing sustainable development in his country.

“The ADFD funding is instrumental in establishing a state-of-the-art international airport equipped with world-class services and technologies. This marks a major milestone in achieving our national goals of developing infrastructure in the transport sector, enhancing the travel experience, and boosting tourism revenues – key pillars of our national economy,” he said.

Key loans for the Velana International Airport project include:

• $200 million from Saudi Fund for Development
• $50 million from the OPEC fund
• $50 million from the Kuwait fund
• $373.9 million from China’s Exim Bank

The Velana International Airport’s new terminal, which is expected to be completed in 2025, has seen a series of developments over the years, with key milestones outlined below:

• May 21, 2016: Agreement signed with the Saudi bin Laden Group to construct the terminal.
• November 1, 2016: Bin Laden Group initiates survey work for the terminal’s construction.
• August 6, 2018: Work on the new terminal commences, including the beginning of sheet piling.
• June 27, 2019: The design of the new terminal undergoes changes, and a revised agreement is signed with bin Laden.
• December 17, 2019: Work resumes, with the completion of the foundation.
• April 20, 2022: The designs for the new terminal are unveiled.