Saudi Fund extends additional USD 17 million loan to develop Velana Airport

The Saudi Fund for Development has extended an additional USD 17 million loan to the Maldives for the ongoing project to develop a new international passenger terminal and upgrade cargo services at the Velana International Airport (VIA).

The agreement was signed by Saudi Fund for Development’s CEO Sultan bin Abdulrahman Al-Marshad and Maldivian Finance Minister Moosa Zameer in a ceremony held on Monday morning at the President’s Office.

The Saudi Fund for Development is extending a loan of 63,750,000 – equivalent to USD 17 million.

Speaking at the signing ceremony, Zameer said that the project to upgrade the Velana International Airport is crucial for the development of the Maldives.

Zameer said that despite the delays, the incumbent administration is determined to complete the project.

He also thanked the Saudi Fund for Development for its assistance to the Maldives, and expressed confidence the partnership will grow stronger in the coming years.

Speaking at the ceremony, Al-Marshad highlighted on the history of the strong partnership between the Maldives and the Saudi Fund for Development, which began 47 years ago on 1978 with funding for the VIA – then called the Male’ International Airport.

Al-Marshad noted that the Saudi Fund for Development has provided support to the airport seven times over the course of the years, cumulating in total USD 240 million in financing for its development.

He expressed hopes the additional loan will help the Maldives complete key works in the larger VIA development project – the development of the new international passenger terminal and upgrade of cargo services.

Ahead of the signing of the loan agreement, President Dr. Mohamed Muizzu conferred the Order of the Dignified Rule of Muleege Dynasty to Al-Marshad, in recognition of the extensive support and cooperation the Saudi Fund for Development continues to provide for the welfare and progress of the Maldivian people.

The VIA, located in Hulhule’, an island near the capital Male’ City, started out as a small strip of land in 1960. On April 12, 1966, then-President Ibrahim Nasir opened a new asphalt runway at the airport – built by the government with help from dozens of volunteers from Male’. The airport celebrated its 59th anniversary last weekend.

The airport soon became central to the country’s economy, as it began welcoming its first tourists in the 1970s.

The VIA is currently in the middle of a mega development project, including a new international passenger terminal which can handle up to 7.5 million passengers annually. The project is crucial to the country’s plans to boost its economy.