MACL Debt Surges to MVR 16.64 Billion After Hulhumalé Land Lease and Major Loans

The audit report of Maldives Airports Company Limited (MACL), which operates Velana International Airport (VIA), has revealed that the company's total debt has reached MVR 16.64 billion. According to the report, this significant increase is due to large loans taken for the development of airport infrastructure and the transfer of national-level agreements for government land reclamation under MACL. The audit report states that the main guarantee submitted for loans from foreign financial institutions for major projects such as the new passenger terminal, new runway, and fuel farm is the right to lease Hulhumalé land, along with all existing and future buildings and facilities on that land. The value of the right to use only the Hulhumalé land, which is included as a grant in the company's accounts, exceeds MVR 7 billion, while large areas of Hulhumalé have already been leased out to various entities on a commercial basis. Additionally, sovereign guarantees from the state have been provided through the Ministry of Finance for these loans. The audit report also highlights that the value of MACL's Property, Plant and Equipment (PPE) and unfinished projects has increased from MVR 20.37 billion to MVR 23.6 billion. This represents a significant proportion, between 59 percent and 65 percent of the company's total liabilities. Another major reason for the additional burden on MACL's financial statements is Marine and Integrated Infrastructure Development (MIID), established as a subsidiary of the company on September 18, 2025. MIID, created to undertake large government projects such as the Giravaru Bay reclamation, has MVR 1.76 billion listed under unfinished projects and faces billions of rufiyaa in debts and financial liabilities within a short period. The audit report has highlighted as a major challenge to MACL's financial sustainability that the financial burden of large government land reclamation projects has been brought under the company, apart from its primary responsibility for airport development.