The Planning Ministry has said that funds have not been arranged for the construction of domestic airports.
The government has opened for proposals the construction of six domestic airports in different parts of the country on a cross-subsidy basis. However, the government has not said that the financing for any of these airports has been secured.
Replying to the Parliament inquiries regarding the airports project, Minister Aslam on Wednesday said the government lacked the funds to implement the projects, despite some stating that funds were available.
"There are parties that have been checked for proof of finance. The amount checked is above USD 30 million. We are now working to establish a memorandum of understanding with these parties," Aslam said.
"[We are working on] an agreement where payments must be made within 45 days. There are legal requirements to be met; that is what we are working on," the minister added.
The government decided to lease islands to develop resorts for parties willing to develop airports on a cross-subsidy basis. The prices announced for the airport development were later reduced.
Islands announced for airport development:
Hdh. Makunudhoo - $23.3 million
Sh. Bileffahi - $23.6 million
B. Thulhaadhoo - $21.9 million
Th. Vilufushi - $33.3 million
F. Magoodhoo - $8.2 million
An island in the southern part of Raa atoll (island not specified) - $23.6 million
The government is seeking parties to develop the airports under regulations on leasing islands for tourism purposes on a cross-subsidy basis. The amount of investment proposed for the development or financing of the airport will then be deducted from the acquisition cost of the island or lagoon being leased, and land rent.
Under this model, proposals can be submitted to the Economic Ministry without a bid invitation under the Unsolicited Proposals Policy.
The government has already commenced airport projects in M. Muli and GDh. Faresmathoda.
