The Maldives Fund Management Corporation (MFMC) has signed an agreement with Atoll Works Private Limited to undertake a project involving the dredging, reclamation, and revetment of 16 islands within Gaafarufalhu, Kaafu Atoll. It marks the atoll's inaugural project of reclaiming multiple islands within the same lagoon.
The agreement entails the development of 14 private islands and two luxury resorts within the lagoon. In addition, it encompasses the reclamation of an extra 40 hectares of land, resulting in a total of 106.91 hectares to be reclaimed. The reclamation and revetment operations come at a total cost of USD36.5 million, a figure lower than ongoing dredging projects in the Maldives.
MFMC has clarified that the dredging will proceed under a contractor financing arrangement, highlighting the need for upfront payments. As such, the reclamation operations are scheduled to commence imminently. The contractor will compensate costs by reclaiming the islands and leasing them out on a long-term basis.
Gaafarufalhu falls under the jurisdiction MFMC for development pursuant to the Integrated Tourism Development Concept. With the conceptual master plan for lagoon development already finalised, the project is the government's inaugural venture under the Integrated Tourism Development Concept to lease private islands on a long-term basis.