MFMC to reclaim 16 islands in Gaafaru Lagoon

Maldives Fund Management Corporation (MFMC) has formally entered into an agreement with Atoll Works Private Limited, towards the dredging, reclamation, and shore protection of 16 islands located in Gaafaru Lagoon in Kaafu atoll.

The 16 islands to be reclaimed in the project consists of 14 private islands and two luxury resorts.

The contract also encompasses the reclamation of another 40 hectares of land on the island.

With a combined reclamation area of 106.91 hectares, this project “represents the first instance of simultaneous reclamation of multiple islands within the same lagoon in Kaafu atoll.”

The total contract value for the project amounts to USD 36,503,863.92. This total value also includes USD 29,232,774 which is specifically designated for the reclamation aspect; at a rate of USD 7.80 per cubic meter for 3,747,792 cubic meters of sand – making this rate one of the most competitive rates observed for a reclamation project in the Maldives in recent years.

Moreover, the project will proceed under a contractor financing model, facilitating swift resource mobilization and initiative of reclamation works.

MFMC is not required to provide any upfront payment to the contractor, and as such, the operation of the project is expected to commence soon. Repayment of the contracted amount will initiate upon the completion of the reclamation and generation or revenue through the sale of these islands on a long-term lease basis to private buyers.

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