Qasim: Govt Seizure, Nearby International Airport Blocked Kaadedhdhoo Upgrade
Kaadedhdhoo Airport managed by Villa Air.
Villa Group Chairman and Maamigili MP Qasim Ibrahim has issued a detailed statement explaining why Kaadedhdhoo Airport could not be developed into an international airport, days after the government finalised a USD 18 million takeover of the facility from Villa Air.
In a four-page statement, Qasim said the project had stalled after the government took over the airport in 2017 during former President Abdulla Yameen’s administration, and due to the current government’s announcement of another international airport nearby. He argued that these factors hindered Villa’s ability to secure financing and move forward with the planned development.
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Background on the Takeover
Kaadedhdhoo Airport was leased to Villa Air in 2013 for a 50-year period. The lease was annulled in 2017 by the Yameen administration, citing non-compliance with civil aviation standards. At the time, Villa had proposed a USD 150 million plan with a foreign partner to transform Kaadedhdhoo into an international airport, with a request to extend the lease to 99 years.
Qasim noted that the original agreement included a lagoon allocation for resort development as a government subsidy, which was not provided when the airport was taken over. Villa challenged the termination in court, and in 2018 the Civil Court ruled that the government had unlawfully annulled the lease — a decision later upheld by both the High Court and the Supreme Court. The airport was formally returned to Villa in 2022, during former President Ibrahim Mohamed Solih’s administration, along with two lagoons.
Impact of New Airport Project
According to Qasim, Villa’s efforts to revive the project after regaining Kaadedhdhoo were hampered by financing difficulties caused by the COVID-19 crisis and the announcement of a new international airport in Gaafu Dhaalu Thinadhoo lagoon. President Muizzu signed an agreement with a Thai company during the parliamentary election campaign to develop Thinadhoo as an international airport, but the firm was later revealed to be fraudulent.
Qasim said the Thinadhoo plan nevertheless created uncertainty, making it difficult for Villa to secure funds. He added that political pressure from Thinadhoo lawmakers also delayed progress.
Compensation and Settlement
The government recently offered USD 18 million in compensation to take over the airport, a figure lower than Villa Air’s initial request of USD 21 million. The offer, which can be settled in 18 instalments or through tax deductions, has been accepted by Villa.The statement cited a valuation by Ernst & Young, which estimated the cost of developing Kaadedhdhoo Airport at USD 100 million and placed its current value at USD 18.5 million.
Criticism of Yameen
Qasim also criticised former President Yameen, accusing him of targeting Villa companies and his family during his administration. He said he had always been aware of Yameen’s intentions but chose to support him in the 2013 presidential election at the request of Yameen’s half-brother, former President Maumoon Abdul Gayoom, and other senior politicians. Qasim claimed that Yameen was elected with his support, adding: “This is not the first time Yameen has attempted to damage the reputation of Villa companies and my reputation.”
He further alleged that Yameen had shown during his presidency that he was willing to act against anyone he disliked, regardless of the consequences.Qasim maintained that despite these challenges, Villa would have been able to develop Kaadedhdhoo into a profitable international airport had it been allowed to proceed with its plans.
