The invitation to tender was extended to develop or finance the development of domestic airports in six islands under the regulation on lease of islands, land and lagoon for tourism as cross-subsidy.
Cross subsidy project consists of spending and completing a government project in order to attain islands, lagoons, or land in the Maldives. These projects will force the government to give away more islands, lagoons, or lands to individuals.
The government has detailed cross-subsidy as an allowance or relief provided by the state to a person who has invested his or her own funds in a project carried out under an economic policy or social policy for the public benefit of the state.
According to Planning Ministry, the investment cost will be deducted from the acquisition cost and lease for the island, land or lagoon which will be issued in exchange for the investment.
The airport development projects will be carried out in these islands, with projected costs as follows:
- HDh. Makunudhoo: USD 23.3 million
- Sh. Bilehfahi: USD 23.6 million
- B. Thulhaadhoo: USD 21.9 million
- Th. Vilufushi: USD 33.3 million
- F. Magoodhoo: USD 8.2 million
- R. Atoll (southern end): USD 23.6 million
This is the third time the Ministry has announced its invitation seeking investors for the projects.