Hankede Project Loan Stalled Following Maldives’ Debt Deferral Request to China

The USD 120 million loan intended for the Hankede Integrated Tourism Development Project has been stalled following a request by the Government of Maldives to defer debt repayments to several Chinese banks, Addu Hithadhoo Central MP Ahmed Azaan Marzooq has revealed.

In a post on X, Azaan — a member of the ruling People’s National Congress (PNC) — stated that under Chinese regulations, new loans cannot be granted while debt deferral procedures are active. He identified this as a key reason the Bank of China loan, which was expected to finance the project, has not materialised.

advertisement

advertisement

advertisement

ހަންކެޑެ މަޝްރޫއު ހުއްޓާލާ, އެ ސަރަހައްދު އެހެން ކޮންސެޕްޓަކަށް ތަރައްޤީކުރަން ނިންމި ނިންމުމާއި،އައްޑޫގެ ގިނަ ރައްޔިތުންނެކޭ އެއްގޮތަށް އަޅުގަނޑު ވެސް ދެކޮޅު !

ހަންކެޑެ މަޝްރޫއު އަކީ ބޭންކް އޮފް ޗައިނާއިން 120 މިލިއަން ޑޮލަރުގެ ލޯނެއް ނަގައިގެން ތަރައްޤީކުރަން ނިންމާފަވާ…— Ahmed Azaan (@axanner) June 30, 2025

MP Azaan expressed strong opposition to the government’s recent move to cancel the project and rebrand the area with a new concept. “Like many residents of Addu, I am against halting this transformative project,” he said, highlighting that the project had reached an advanced stage when the current administration took office, although the final loan agreement had not yet been signed.

He noted that a partial advance payment had already been made to the contractor by the previous government. The current administration initially appeared to support the project, holding a grand launch event with fireworks in April 2024, ahead of the parliamentary elections. However, the project has since been abruptly cancelled without a clear explanation.

The Hankede Integrated Tourism Development Project had been formally initiated through a signed agreement between the Maldives Fund Management Corporation (MFMC) and the China National Electric Engineering Company (CNEEC) during a ceremony at the Ministry of Economic Development on March 2023.

Further progress was marked when Home Minister Ali Ihusan and CNEEC Vice President Jin Keho laid the foundation stone during an official ceremony on 10th June 2024. Additionally, in October 2024, MFMC signed a hotel management agreement with a UAE-based company to operate the proposed resort.

Despite this progress, the government has announced plans to repurpose the Hankede area into a port dedicated to halal tourism — a significant departure from the original integrated tourism concept. This shift has raised concerns about investor confidence, particularly in Addu City, which has long struggled to attract tourism-related investments.

“Even though some islands in Addu are being offered at discounted rates, there is still no interest from investors,” Azaan stated. He described the cancellation as a major blow to years of coordinated promotion by the government, local councils, and the private sector.

He also criticised the government’s failure to consult relevant stakeholders before making such a major change, warning that this could erode investor trust and seriously undermine Addu’s development prospects.

Although the government previously appeared committed to continuing the Hankede project, it has not issued any official statement to explain its apparent change in direction.

In response to the uncertainty, MP Azaan has submitted formal letters and petitions seeking clarification on the reasons behind the project’s delay.. He has also been increasingly vocal in his criticism of the government on broader issues — including the recent removal of Supreme Court judges, a motion he pointedly refused to support.