The Economic Council has decided to cancel seven finance agreements related to the development of domestic airports across various parts of the country. This decision, announced at a press conference at the President’s Office by Principal Secretary to the President on Public Policy Abdulla Nazim, marks a departure from the previous government’s strategy for airport development.
According to Nazim, the primary reason for this cancellation was the failure to meet payment deadlines stipulated in the agreements. Despite extending the deadlines for these payments, the Council concluded that it was unlikely the required funds would be received even with additional extensions. Nazim, however, did not specify which projects were affected by this decision.
These agreements were part of an ambitious plan by the previous government to develop domestic airports in many islands on a cross-subsidy or project-by-project basis. The intention was to improve connectivity and spur economic development in these regions. However, the failure to secure the necessary financing has led to a reassessment of these projects.
It remains to be seen how the government will realign its infrastructure strategies in light of this new direction.