Tuesday 21st May 2024
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Fund Management corporation

Maldives Fund Management Corporation (MFMC) Partners with Atoll Works for Land Reclamation in Kaafu Atoll

In a significant move poised to reshape the landscape of the Maldives, the Maldives Fund Management Corporation (MFMC) has inked a pivotal deal with Atoll Works Private Limited for the reclamation of 16 islands nestled within the pristine waters of Kaafu Atoll Gaafaru Lagoon.
The agreement, formalized on May 8th, 2024, signals the commencement of an ambitious project encompassing the dredging, reclamation, and shore protection of the designated islands. Of these, 14 are slated for exclusive private island development, while the remaining 2 are earmarked for the establishment of luxury resorts, set to elevate the archipelago's tourism sector to new heights.
At the heart of the contract lies the reclamation of 40 hectares of land on K. Gaafaru island, with a collective reclamation area spanning an impressive 106.91 hectares (1,069,100 square meters). The financial commitment for this endeavor stands at a noteworthy USD 36,503,863.92, with USD 29,232,774 specifically allocated for the reclamation process. Notably, this project boasts one of the most competitive rates observed for similar undertakings in recent Maldivian history.
Operating under a contractor financing model, the initiative facilitates swift resource mobilization, allowing for the expedited commencement of operations without the necessity of upfront payments from MFMC. This financing model ensures that the repayment of the contracted amount commences upon the completion of island reclamation and subsequent revenue generation from the sale of long-term lease rights to private buyers.

The decision to entrust K. Gaafaru lagoon to MFMC for integrated tourism development underscores the government's commitment to fostering sustainable growth in the Maldivian tourism sector. MFMC has already finalized the conceptual masterplan for the lagoon, with the reclamation works serving as the inaugural phase in realizing this vision.

Furthermore, this groundbreaking endeavor marks the Maldives' maiden foray into integrated tourism development, wherein private islands are offered for sale on a long-term lease basis, heralding a new era of investment opportunities in the nation's flourishing tourism industry.

As construction gears up to commence, anticipation brews over the transformative impact this project will wield, not only on the Maldives' physical landscape but also on its economic trajectory, promising boundless opportunities for growth and prosperity in the years ahead.