The government has identified 19 projects eligible for cross-subsidy investment, setting out a framework that links private investment opportunities with public projects across security, tourism, infrastructure, housing, climate resilience and social development.
President Dr Mohamed Muizzu issued Presidential Decree No. 11/2026 on Monday, establishing the projects that may be carried out under cross-subsidy arrangements and the minimum investment thresholds applicable to contractors.
The Decree was issued under the Tourism Act, which requires the government to publish annually the minimum investment thresholds for contractors undertaking key projects through cross-subsidy arrangements. The mechanism is tied to the government’s investment policy, which covers tourism development, infrastructure, climate resilience, homeland and national security, and social development.
According to the annex to the Decree, the minimum investment requirements for the 19 projects amount to USD 236.25 million, equivalent to around MVR 3.64 billion.
The largest share is allocated to domestic security and defence-related initiatives, with projects in this category carrying a combined minimum investment requirement of USD 155 million. These include the development of Hope Island as a juvenile rehabilitation facility and the development of a central prison complex.
The Decree also includes a defence-related investment requirement of at least MVR 100 million for projects aimed at protecting national independence and sovereignty, and maintaining peace.
Tourism and civil aviation projects account for USD 25 million in minimum investment requirements. These include the development of international and domestic airports, the Asseyri Tourism Project in Addu, nature parks in each atoll and projects linked to heritage tourism.
Housing and infrastructure projects listed under the Decree carry minimum investment requirements totalling USD 19 million. These include causeway development, social housing, land reclamation and the establishment of utility services.
Environment, climate change and energy projects account for USD 17.25 million. The listed projects include water and sanitation initiatives, the establishment of composting plants in 50 islands, and the development of waste management centres and waste transfer stations.
The Decree also identifies a USD 20 million project to establish a high-performance centre focused on youth empowerment and sports facility development.
By publishing the list and investment thresholds, the government has formalised the annual project framework for cross-subsidy arrangements. The approach allows selected public policy projects to be linked with investment incentives, particularly in areas where the government is seeking private participation to deliver infrastructure and social development priorities.
