Agreement signed with Singaporean company to advance Maldives Gateway project

A framework agreement has been signed with a Singaporean company to advance the Maldives Economic Gateway (MEG) Project.

Maldives Industrial Development Free Zone (MIDFZ) signed the agreement as the master developer of the project with Singapore-based Capital Asia Invest Private Limited (CAI).

The agreement was signed by Managing Director Shimad Ibrahim on behalf of MIDFZ while Chief Commercial Office Tan Kun Chiao George signed on behalf of CAI.

As per the Economic Ministry, the agreement seeks to advance the MEG project in line with President Dr. Mohamed Muizzu’s vision to diversify the Maldivian economy.

The Ministry detailed that the framework agreement establishes a collaborative plan for defining the scope and phased the development of MEG project in line with the government’s plan to transform Ihavandhippolhu region into a major commerce and logistic hub. In this regard, the parties will work together to assess the cost, undertaken financial assessments and establish key commercial terms for the execution project. The project will be pursued under the Special Economic Zones framework.  

Speaking at the signing ceremony, Economic Minister Mohamed Saeed said the agreement marked a historical milestone as it a step forward in achieving President Dr. Mohamed Muizzu’s goal to diversify the Maldivian economy.

He thanked CAI for their decision to assist in the project.

Speaking further, Minister Saeed described President Muizzu as an individual capable of undertaking such a complex project when he made that decision. On this note, he underscored that former administrations had failed to follow through despite resolving to commence maritime services in Ihavandhippolhu.

“Some former administration had thought of it (commencing this service). However, no action was taken to make it a reality. This is why I am especially noting that President Muizzu is a young and education individual with experience in engineering,” he said.

Minister Saeed assured full cooperation from Maldivian government and people for CAI’s undertakings with respect to the project.

Shimadh, who also spoke at the ceremony, said CAI will invest in feasibility studies, technical works and launching maritime services in Ihavandhipplhu under the framework agreement signed on Saturday. He further said a permanent agreement is expected to be executed with the company within the next six months following which efforts will commence to arrange a USD 100 million facility for the project.

As per Shimadh, the feasibility studies will be utilized to commence the development of land, harbor, keywall, warehouse and tourism real estate services which will need to be established at Ihavandhippolhu as ancillary services for the commencement of maritime services.

“We hope that this partnership becomes a success and that Maldives Economic Gateway becomes a strategic investment that takes Maldivian economy to new heights,” he added.

MIDFZ is a consortium of five state-owned enterprises – State Trading Organization (STO), Maldives Ports Limited (MPL), Maldives Airports Company Limited (MACL), Housing Development Corporation (HDC) and Maldives Transport and Contracting Company (MTCC) – established in January to lead strategic initiatives to strengthen Maldives’ economic security.

In this trajectory, bunkering services was launched in Ihavandhippolhu in September with the aim of bringing a revolutionary change to the Maldivian economy.

Ihavandhippolhu sees high traffic of sea vessels. As a result, during former President Abdulla Yameen Abdul Gayyoom's administration, a project to develop a modern harbor in the atoll to profit from trade was announced.

The 'I-Heaven' project, included a port, an airport, bunkering service, real estate and tourist resorts. However, the project was never implemented due to lack of investors.  

The former administration of Ibrahim Mohamed Solih also unsuccessfully attempted to commence the project to no avail.