Government attempts to secure MVR 3 billion loan

The government has started its attempts to secure a USD 200 million (MVR 3 billion) loan to develop a harbor and a special economic zone in Ihavandhippolhu.

According to documents received by TMJ, the current administration hopes to dedicate all of the Ihavandhippolhu lagoon towards this project. The project includes building bunkering facilities and warehouses, introducing logistic services, IT parks and real estate and many other facilities.

The government has estimated that the project will be completed in multiple phases, where the first phase will see the reclamation of 500 hectares of land. They believe that the reclamation and revetment installation will cost approximately USD 200 million and have already begun asking international financial institutes for the funding.

TMJ has learned through reliable resources that the government’s initial request to fund this project was made to India. However, they have not received a response.

Due to the lack of response, the government has begun to consider other avenues for financing. They have requested loan financing of USD 200 million from Islamic Development Bank, who have yet to respond to the request.

Building a transshipment in the Ihavandhippolhu area and introducing special, economically productive activities in the area had been an initiative by the former President Abdulla Yameen Abdul Qayyoom’s administration where they had approved an SEZ bill for the specific project. Interestingly, back then, the ruling party, MDP’s senior members had argued against the bill.