228 Hectares of Land to be Reclaimed in Addu Under Addu Development Project (ADP) Roadmap

PUBLISHED June 10, 2021

The reclamation of land in Addu is a one-off land reclamation and shore protection project which is proposed to create a land area of approximately 228 hectares. The proposed reclamation for purposes of residential, commercial, and industrial development is estimated for Hithadhoo, Hulhudhoo/Meedhoo (38 hectares including two island resorts of 5 hectares each), and Maradhoo/Maradhoo-Feydhoo (75 hectares). The reclamation of land in Addu is an important pledge of the Government of President Solih.

The zoning plans for these reclamation projects will facilitate the upgrading of existing harbour front facilities, allocation of land for trade, tourism and social uses, as well as residential needs of these communities. Furthermore, lagoons will be reclaimed to form islands where the private sector would be invited to develop resorts. Land reclamation and shore protection of an estimated 25 hectares is proposed to attract potential investors to develop 4 star “Lagoon Resorts” in the region.

This huge developmental project is to cost USD 70-75 million subject to final tendered costs.  The project is expected to be completed in 24 months.  The last date for bid submission for the tender floated by Ministry of Finance, Government of Maldives is by June 15, 2021. The awarding of the project is likely to happen in 4-5 weeks after bid submission.

In order to boost the economy and attract private investments into Addu City through tourism, fishing, retail and wholesale trading, the Government of Maldives has embarked on the “Addu Development Project (ADP)”. The city has the potential to become a modern economic hub in the South of Maldives.

The project has been formulated – under the ADP - to transform Addu City into a fully functional city, a thriving economic hub and an attractive tourist destination. Some of the key development objectives are: -  

Stimulating the economy: The project entails public sector investments in the economy and the development of infrastructure required to enhance private sector investments that will spur economic growth. 

Tackling high unemployment: While Addu City is the second largest population base in the country, nearly three-fifths of the registered population of Addu City reside outside the city, due to lack of economic and employment opportunities. The proposed projects are expected to induce economic growth and create significant employment opportunities. 

Promoting decentralization: The project is in line and foreshadows the government’s objectives of promoting decentralization. The project will lay the foundation to develop Addu City to be a modern and thriving urban centre in the south of the Maldives. By addressing the key issues of employment opportunities and social infrastructure, the project will relieve the population congestion in Male.

The Consultant for the project M/s L&T Infra Engineering Ltd. in JV with LEA Associates South Asia Ltd. was chosen by the Government of Maldives after a tendering process carried out by the Ministry of Finance, Government of Maldives. The tender documents were prepared through consultations between the Government of Maldives and the EXIM Bank of India. The Consultant prepared the Detailed Project Report (DPR) which has been approved by technical authorities in the Government of Maldives.

The final tender for selecting the Engineering Procurement and Construction (EPC) contractor (s) will be issued by the Government of Maldives. The terms and conditions of the Line of Credit are transparent and in public domain on the EXIM Bank of India website (https://www.eximbankindia.in/lines-of-credit ) which includes an interest rate of 1.75% within a period of 5 years and a 20 year repayment tenor.

This Indian Line of Credit project mandates that 55% of the project components are sourced from India. This leaves ample space for Maldivian businesses and services to be engaged in the project implementation.


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