A Roadblock in Paradise: Addu’s Airport Expansion Stumbles Over Corporate Greed and Government Missteps

2 mins read

MALE, — In the lush, equatorial heart of the Maldives, Addu City is a paradox: a prime swath of land blessed with turquoise lagoons and rare tropical jungles, yet its people reap scant rewards from its bounty. The recent resolution of a contentious dispute over a road critical to the Addu International Airport expansion project lays bare this tension, exposing corporate overreach, government fumbles, and a community caught in the crossfire.

On April 17, Housing Minister Dr. Abdulla Muththalib announced a breakthrough. After two years of stalled progress, the operator of Equator Village, Kaimoo Travels and Hotels Services, agreed to vacate seven rooms in its labor quarters to make way for a road integral to the $30 million airport redevelopment. “I would like to thank the management of Addu International Airport for their efforts in collaboration with the Ministry of Tourism,” Dr. Muththalib posted on X, crediting the “encouragement and cooperation of the people of Addu City” for the resolution.

The project, funded by a grant from India’s EXIM Bank and contracted to India’s Renatus, began in June 2023 with a completion target of March 2025. Delays, including this dispute, have pushed the timeline to November. The road, requiring just 4,000 square feet of land, became a flashpoint when Kaimoo demanded $25 million in compensation — a sum nearly equal to the entire airport project’s budget. The company also sought to extend leases on two resorts, Sama Island and Enboodhoo Village, by 50 years, a move critics call a brazen attempt to exploit the situation.

“They’re holding Addu hostage,” said Aishath Reema, a shopkeeper in Addu’s Hithadhoo island. “This is our land, our future, but Kaimoo acts like they own it all.” Her sentiment echoes a broader frustration: Addu, despite its strategic location and natural splendor, remains economically stunted, its people sidelined while tourism giants and distant governments dictate terms.

Equator Village itself is a relic, built on land once used by a British military base in Gan during the 1950s. The property, barely renovated, houses staff in aging buildings alongside a kitchen, laundry, and squash court. Kaimoo’s claim that relocating these facilities justifies a $25 million payout has sparked outrage. “It’s absurd,” said Mohamed Shafeeu, a fisherman and community organizer. “They’re asking for a fortune for a few old rooms while our airport, our lifeline, sits unfinished.”

The government’s handling of the saga has drawn scrutiny. Former President Ibrahim Mohammed Solih first raised the issue with Kaimoo in May 2023, but talks fizzled. The current administration, led by President Dr. Mohamed Muizzu, initially threatened to reroute the road — a costly and time-consuming alternative — before public protests forced a reckoning. “The government let this drag on too long,” said Aminath Shifana, a teacher in Addu. “They should’ve stood firm from the start instead of bending to corporate pressure.”

This isn’t Addu’s only tale of mismanagement. On Vilingili, home to the Maldives’ only equatorial jungle, the Shangri-La resort sits vacant. The operator, citing market conditions, has delayed reopening, leaving the island’s potential untapped. Legal experts point to the government’s lack of expertise in enforcing contracts, while others whisper of corruption or capitalist arm-twisting. “Vilingili could be a jewel for Addu, but it’s a ghost town,” Shafeeu said. “Either the government is too weak, or someone’s waiting for a bigger payout.”

The Addu airport dispute, resolved only after public outcry, underscores a deeper malaise. The Maldives government, often swayed by big businesses and investors, struggles to prioritize its people. The EXIM Bank’s $30 million grant, meant to uplift Addu’s economy, was nearly matched by Kaimoo’s compensation demand — a stark illustration of misplaced priorities. While the road will now proceed, two years of delays have cost jobs and opportunities. Who, as Shafeeu asks, “will compensate us for that lost time?”

Addu’s story is a microcosm of the Maldives’ challenges: breathtaking beauty, squandered potential, and a government caught between corporate greed and its own shortcomings. As the airport project inches forward, Addu’s people remain wary, their faith in progress tempered by a history of promises unkept.

Don't Miss

Addu City’s Future Shines Bright with Hankede Bridge and Land Dredging Project Inauguration

Addu City, Maldives – In a landmark moment for Addu City’s development,

Discovering Addu City: The Southern Gem of the Maldives

Geography and Significance Southernmost Point of Southeast Asia: Addu City holds the