MFMC Signs Agreement for 16-Island Project with Atoll Works

Maldives Fund Management Corporation (MFMC) officially signed an agreement with Atoll Works Private Limited marking a significant step towards the dredging, reclamation, and shore protection of 16 islands within K. Gaafaru lagoon.

As outlined by MFMC, 14 of the designated islands are slated for individual private island development aimed at real estate ventures, while the remaining two are earmarked for the establishment of luxury tourist resorts.

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The ambitious project entails the reclamation of an additional 40 hectares of land on Gaafaru island, bringing the total reclamation area to 106.91 hectares.

This initiative marks a milestone as the first instance of simultaneous reclamation of multiple islands within the same lagoon in Kaafu atoll.

Valued at USD 36.5 million, the project encompasses dredging, reclamation, and shore protection, with USD 29.2 million allocated specifically for the dredging of 3,747,792 cubic meters of sand at a competitive rate of USD 7.80 per cubic meter. This rate stands out as one of the most competitive observed for a reclamation project in the Maldives in recent years.

The project will proceed under a contractor financing model, facilitating swift resource mobilization and initiation of the reclamation works. Given that MFMC is not required to make any upfront payment to the contractor, commencement of the physical works is anticipated in the near future.

Repayment of the contracted amount will commence upon the completion of island reclamation and the subsequent generation of revenue through the sale of these islands on a long-term lease basis to private buyers.

The Maldives government, through a presidential decree, entrusted K. Gaafaru lagoon to MFMC for the implementation of an integrated tourism development initiative. The corporation has also finalised a conceptual masterplan for the lagoon, with the reclamation works serving as the initial phase in accordance with the outlined plan.