Maldives signs additional $17 million loan agreement with Saudi Fund for main airport expansion

Maldives has signed an additional loan agreement worth USD 17 million (MVR 261.8 million) with the Saudi Fund for Development to support the ongoing construction of the new terminal at Velana International Airport (VIA).

The agreement, equivalent to 63.7 million Saudi riyals, was signed at a ceremony held at the President’s Office on Monday.

Minister of Finance Moosa Zameer signed on behalf of the Maldives, while CEO Sultan Abdul Rahman Al-Murshad represented the Saudi Fund. Al-Murshad is currently in the Maldives on a three-day visit.

According to the Ministry of Finance, the additional funds are intended to expedite the completion of the terminal project.

The ministry stated that once completed, the project is expected to improve the Maldives’ capacity to accommodate more tourists and airlines, while also facilitating growth in related sectors including tourism, trade, and transport.

The Saudi Fund has previously extended financial support for the VIA development, including loans amounting to USD 200 million. Other international financiers contributing to the project include:

• Abu Dhabi Fund: USD 90 million
• OPEC Fund: USD 50 million
• Kuwait Fund: USD 50 million
• China Exim Bank: USD 373.9 million

The new VIA terminal was awarded to Saudi Bin Laden Group in May 2016. The company has subcontracted the construction to China Harbour Engineering Company (CHEC). The estimated total cost of the terminal project is USD 350 million (MVR 5.3 billion).

The completed terminal is expected to handle up to 7.5 million passengers annually. It will include 40 departure gates, 38 immigration counters, and multiple aero bridges for passenger boarding and disembarkation.