STO to secure USD 40 million loan to develop Gan Airport

State Trading Organization (STO), major shareholder in the consortium company, Addu International Airport Private Limited incorporated to develop and manage Gan Airport in S. Addu, said today that they were negotiating with Asian Development Bank (ADB) to secure a loan to fund the project.

Sahid Ali, Managing Director of STO said today that USD 50 million would be needed for the project of developing Gan Airport as an international airport, and that 40 million out of that total would be secured as funding and private equity, and that negotiations with ADB were already under way.

“Development of the runway would cost around USD 22 million. In addition, USD29 million would be needed for other infrastructural developments and equipment. We are trying to get the money through funding arrangements and private equity”, Shahid said.

Shahid said each company holding shares in the consortium Addu International Airport Private Limited had agreed to spend USD 4 million (about MRF 60 million) for the project. The consortium includes, in addition to STO, Maldives Airports Company Limited and Gan Airport Company.

Shahid said that negotiations with ADB were going on very well, and that technical documents to be submitted to the Bank were already being prepared. “We are working on the technical documents. Studies have been completed. At the initial state, the discussions with the Bank were very constructive and positive”, he said.

The government gave the contract to develop Addu Gan Airport as an international airport to Dubai-based Supreme Fuel Trading FZE Company, before terminating the contract due to the company’s failure to perform their duties under the contract. The project was then awarded to Addu International Airport Private Limited.