President Ibrahim Mohamed Solih has announced plans to turn the Kadhdhoo Airport into an international airport through cross subsidization.
In a decree announcing the decision Tuesday, President Solih said the minimum investment to re-develop Kadhdhoo Airport through cross subsidization is USD 5 million.
The investor or developer will receive an island, land, or lagoon for lease for development as a tourist resort as a cross subsidy.
President Solih has previously said his administration planned on redeveloping the Kadhdhoo Airport as part a larger plan to develop L. Atoll.
The administration has signed agreements with several companies to co-finance a project to develop six airports across Maldives. The project to develop a residential city in Giraavaru lagoon is also set to be awarded through cross subsidization.
In the decree Tuesday, President Solih said the minimum investment for the project to develop six airports in the atolls is USD 3 million, and the minimum investment for the residential city project is USD 5 million.
Finance Minister Ibrahim Ameer recently defended the government’s decision to opt for cross subsidization to conduct developmental projects, stating that it was more beneficial to the government.