MFMC breaks ground with land reclamation contract for 16 Islands in Kaafu Atoll Gaafaru lagoon

08 May 2024 | 23:24
Agreement signing ceremony held today (Photo/MFMC)

In a move set to transform the landscape of Kaafu Atoll Gaafaru Lagoon, the Maldives Fund Management Corporation (MFMC) has officially commenced a groundbreaking project for the reclamation of 16 islands.

This ambitious endeavor, as revealed in a statement released on May 8th, 2024, marks the beginning of simultaneous reclamation efforts within the same lagoon, a first-of-its-kind initiative in Kaafu Atoll.

Under a contractual agreement with Atoll Works Private Limited, MFMC will oversee the dredging, reclamation, and shore protection of these 16 islands.

Of these, 14 have been earmarked for individual private island development for real estate purposes, while the remaining 2 will be dedicated to luxury resort development.

Additionally, the contract encompasses the reclamation of 40 hectares of land on K. Gaafaru island.

The total contract value for this comprehensive project amounts to USD 36,503,863.92, with a significant portion allocated specifically for the reclamation aspect.

Notably, the projected cost for sand, estimated at a competitive rate of USD 7.8 per cubic meter, demonstrates a cost-effective approach to the reclamation process.

Operating under a contractor financing model, MFMC anticipates swift resource mobilization and the prompt initiation of reclamation works.

With no upfront payment required, the commencement of operations is expected to occur promptly.

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

The Maldivian government, through a presidential decree, has entrusted K. Gaafaru lagoon to MFMC for the implementation of an integrated tourism development initiative.

As such, MFMC has finalized the conceptual masterplan for the lagoon, with the reclamation works serving as the initial phase of this ambitious undertaking.

This pioneering project signifies the Maldives' inaugural integrated tourism development endeavor, offering private islands for sale on a long-term lease basis to individual buyers.