Island agreed for Fuvahmulah Airport construction still not granted, says STO

The State Trading Organization (STO) has said that the company has not received one of the islands agreed to the company under the corporate financing agreement to construct and manage Fuvahmulah domestic airport.

Adam Azim, Managing Director of STO told Sun Online that STO was guaranteed to receive two islands for undertaking the construction and management of Fuvahmulah Airport, and that they have yet to receive the larger of the two islands.

“We have made a number of efforts to get this island, and we’re facing difficulties because of the delay,” said Adam Azim.

Ministry of Transport and Communication, which was dissolved in June, had said that their papers show that both island were already granted to STO, Azim said.

The islands were to be developed into tourist resorts to compensate the loss of running the airport. The smaller of the two islands, which is currently under STO, is only 4 hectares.

Officials from Ministry of Tourism were unavailable for comment at the time of publication. Some departments at the Transport Ministry were transferred under the Tourism Ministry following the Transport Ministry’s dissolution.

STO, the government’s main wholesale and retail arm with 92 percent government share, spent MVR 170 million for the construction of Fuvahmulah Airport and spends MVR 1 million per year for the airport’s operation and management.