ADFD extends additional USD 40m loan to complete Maldives’ Velana International Airport

The Abu Dhabi Fund for Development (ADFD) has announced an additional loan of AED 147 million (USD 40 million) to support the upgrade of the Velana International Airport (VIA) in the Maldives.

The new loan follows an earlier loan of AED 183.5 million (USD 50 million) granted in 2017 for the project’s initial phases.

The new financing agreement was signed by Maldivian Finance Minister Moosa Zameer and ADFD’s Director General Mohamed Saif Al Suwaidi in Abu Dhabi on Tuesday.

Several officials from both sides were present at the signing ceremony.

Al Suwaidi said the funding reflects the critical role of ADFD in driving economic and social development in partner countries through transformative infrastructure projects.

“The additional support for the modernization and expansion of the Velana International Airport will promote the Maldives’ growth, as it increases capacity to meet the rising demand from a thriving tourism sector,” he said.

He added that these efforts align with the Maldivian government’s development objectives.

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“ADFD is committed to deepening its partnership with the government of the Maldives, collaborating on impactful initiatives that fulfill the aspirations of the Maldivian people, generate employment opportunities, and drive sustainable development,” he said.

Expressing gratitude to the United Arab Emirates and the ADFD for their continuous support in promoting sustainable development in the Maldives, Zameer emphasized the shared commitment to advancing sustainable development in the Maldives.

“The ADFD funding is instrumental in establishing a state-of-the-art international airport equipped with world-class services and technologies. This marks a major milestone in achieving our national goals of developing infrastructure in the transport sector, enhancing the travel experience, and boosting tourism revenues – key pillars of our national economy,” he said.

The VIA expansion project will see the construction of a new international passenger terminal, designed to accommodate up to 7.5 million passengers annually.

The ADFD has been funding projects in the Maldives since 1976. These projects have played a significant role in improving the quality of life for local communities by developing vital sectors such as transportation, energy, tourism, and housing.