President Dr Mohamed Muizzu has issued a Presidential Decree amending the guidelines for cross-subsidy investment, establishing new minimum investment thresholds under the Maldives Tourism Act.
The cross-subsidy concept involves leasing islands for the development of tourist resorts to parties involved in significant economic and social projects beneficial to the state. Islands are allocated as cross-subsidies for the construction of airports, ferry services and other major infrastructure development projects.
The newly issued Presidential Decree specifies key investment projects, requisite financial commitments, and designated project locations.
Notably, the Decree includes provisions for the development of multiple airports across various islands, including Dhidhdhoo of Haa Alifu Atoll, Makunudhoo of Haa Dhaalu Atoll, Komandoo, Milandhoo and Bileiyfahi of Shaviyani Atoll, Fainu and Alifushi of Raa Atoll, Thulhaadhoo of Baa Atoll, Mathiveri of Alifu Alifu Atoll, Muli of Meemu Atoll, Nilandhoo of Faafu Atoll, Guraidhoo and Vilufushi of Thaa Atoll, as well as an additional airport in covering Gaafu Alifu and Gaafu Dhaalu Atoll, and two airports within Laamu Atoll.
In the tourism sector, the Decree mandates the implementation of the Asseyri Tourism Project in Laamu Gan and Addu City. Furthermore, the Decree authorises the reclamation of 15 hectares of land from Giraavaru lagoon in Kaafu Atoll for the ‘Hope Island’ project, which aims to provide support for at-risk children. Additionally, 30 hectares of land within the same lagoon have been allocated for the development of a new Central Prison Complex.
The Decree further emphasises the prioritisation of national security projects and social housing initiatives, including extensive land reclamation efforts in Rasmale’, Gulhifalhu, Giraavarufalhu, and Uthuru Thila Falhu.
Infrastructure development initiatives outlined in the Decree include the construction of roads and utility networks within newly reclaimed areas, as well as the establishment of causeway links between Veymandoo and Kin'bidhoo of Thaa Atoll, Dhiyamigili and Madifushi of the same atoll, Hithadhoo and Kunahandhoo of Laamu Atoll, Kalaidhoo and Dhan'bidhoo of the same atoll, and Muli and Naalaafushi of Meemu Atoll. Additionally, the Decree provides for the establishment of a High-Performance Centre to enhance national capabilities in various sectors.