Gov’t Inks Deal to Establish Fish Processing Facilities on Three Islands

The Ministry of Fisheries and Ocean Resources has entered into an agreement aimed at establishing fish processing facilities across three islands in the Maldives. 

The islands earmarked for this development are Felivaru from Lhaviyani Atoll, Fiyoaree from Gaafu Dhaalu Atoll, and Maadheli from Dhaalu Atoll. Financing for these initiatives will be facilitated through low-interest loans.

The agreement, forged between the ministry and the Chinese company Dongfang Electric International Corporation, seeks to address the challenges arising from inadequate storage facilities on these islands. It outlines the scope of the project, with a stipulated timeline for completion and commissioning set at 18 months. Minister Ahmed Shiyam anticipates a three-month period for finalising project design and securing finances prior to the project’s official launch.

Minister Shiyam, speaking at the signing ceremony, revealed plans for a 100-tonne fish processing facility in Felidhoo. He highlighted the island’s existing processing capacity of 50 tons, with only 40 tons currently being utilized due to operational constraints. The proposed facility in Felidhoo is estimated to cost USD 50 million.

Discussing the project’s scope for Maadheli, Minister Shiyam disclosed plans for a facility capable of processing 50 tonnes of fish, accompanied by a cold storage capacity of 1,500 tonnes. This marks the island’s inaugural fish processing venture, with anticipated project costs ranging between USD 75 million and USD 100 million.

Similarly, a decision has been made to establish a 100-tonne fish processing facility in Fiyoaree, complemented by a cold storage capacity of 3,000 tonnes. Notably, this venture represents Fiyoaree’s first fish processing facility, with no additional funding earmarked for harbour development due to ongoing infrastructure initiatives. Project costs for Fiyoaree are estimated between USD 50 million and USD 75 million.

Minister Shiyam projected that fish processing could potentially double the revenue generated from fish exports during Ramadan, which amounted to USD 91 million. The ministry forecasts the processing capacity of the completed project to reach 81 tonnes of fish, marking a significant step towards the Maldives’ self-sufficiency in fish and fish product production.