Maldives launches $800 million airport expansion

Male / AFP

The Maldives government has kicked off a controversial $800-million expansion of the country’s main airport by a Chinese company, a move likely to irritate giant neighbour India.
President Abdulla Yameen inaugurated construction work in a ceremony this week in the capital city Male. The expansion means the Airbus A380 will be able to land at the airport which will also be able to handle 7.5 million passengers a year.
“The president stated that with the expansion, the airport would become the economic backbone of the Maldives and that this would be the main gateway of modern day development,” a statement said.
Chinese company Beijing Urban Construction Group was awarded the contract during President Xi Jinping’s visit to the strategically located Indian Ocean islands in September 2014.
Two years earlier, the Maldives kicked out Indian infrastructure firm GMR which was given the airport under a privatisation deal and cancelled its lucrative contract to run the airport. The move sparked fury from New Delhi which threatened to cut off aid to the country, amid concerns the upmarket holiday destination was tilting towards India’s rival China.
The expansion comes as Yameen is set to arrive in India on Sunday for an official visit, and will meet with Prime Minister Narendra Modi.
The Maldives government, which says the airport will not be privatised again, has said the expansion is needed to accomodate increasing tourist numbers to the upmarket honeymoon destination. It comes despite ongoing political turmoil in the Maldives.

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