Project Description

The government has decided to reclaim a new island of 144 ha in Vaavu atoll, which will consist of industrial/commercial land, a domestic airport and a residential area. The total residential area of nearly 50 ha is planned for 4,320 residents

This mega project consists of


Communities from within Vaavu atoll and from other atolls will be relocated to this new island under the Population and Development Consolidation Programme (PDCP). As under the existing PDCP policy of the government any relocation is voluntary and free housing will be provided by the government only if the whole community is moving from an island.


Background

The biggest challenges to speedy and equitable development of the Maldives are the scarcity of land, limited natural resources and small pockets of widely dispersed populations. There are 194 inhabited islands in the country of which population ranges from 104,000 to less than 200. Larger populations are always a priority for government projects and favoured by private sector. This creates a trap of further reductions in population in smaller islands as the working age group and educated migrate, eventually leaving a socially and economically vulnerable community on the island with minimal facilities, lacking education, health and job opportunities. While most atolls have a handful of islands which are in this situation, the atoll that suffers the most from these developmental challenges is Vaavu Atoll.

Vaavu Atoll (or Felidhe Atoll) consists of 19 islands of which only 5 are inhabited. The atoll is the registered home to 2,215 residents (December 2007) making it the least populated atoll in the Maldives. Vaavu Atoll also has the least area inhabitable; a total of 56.2ha is inhabited. In fact Vaavu atoll has the second smallest inhabited island in the Maldives, Rakeedhoo, with an area of merely 6.3 ha. Therefore, given the natural disadvantages for of the atoll, a more rapid development for the atoll population depends critically on the consolidation of the scattered communities, on a land with potential for growth and development.

Under the Population and Development Consolidation Programme (PDCP) of the government the smallest and most vulnerable populations are relocated to larger, more populated islands with high standard of facilities or with development potential. The dilemma of Vaavu Atoll is that, while all the islands are small and vulnerable, there is no existing single island in the atoll with the space to support population movements from any other island. Furthermore none of the five inhabited islands have the potential for land expansion which has provoked the search for an alternative way to consolidate and develop this atoll.

Thus, the residents of three islands from Vaavu atoll have requested to reclaim new land in the southern lagoon, Fotheyo Falhu, of the atoll and to be relocated there. Fotheyo Falhu is one of the largest reefs in the Maldives, stretching from the southern side of the atoll to the eastern rim of the atoll. This is the only lagoon in the atoll with the potential for large scale land reclamation thus making it suitable for land development. A regional airport will also be developed with the island.

Proposed Financing

The project is proposed to be funded by private investors, who will be required to complete the following:


The investor can sub-contract the development any of these components

The investor will be selected based on factors such as speedy delivery of the project and maximum contribution to the development of the residential area. It is expected that the design and preparation of works will take up to 8 months maximum and the land area, housing, airport and minimal facilities will be ready for residents within two years since commencement of physical works.

The management of the airport and the residential area is not required by the investor. Thus after the development of land, the airport and agreed infrastructure for the residential area, the investor will not be required to be involved in the municipal affairs of the airport or the residential area.

Cost Recovery

The cost recovery of the project for the investor will be realised by the following sources of revenue generation.

The operation of three resorts


Industrial land area


Further information

The main co-ordinating agency for the project is the Ministry of Planning and National Development.

The Foreign Investment Services Bureau of the Ministry of Economic Trade and Development is currently working on opening up the project for investors.