$1B Airport Expansion Centerpiece of Maldives Infrastructure Buildout
After two decades of stalled growth, the Maldives construction sector is now undergoing some $2 billion in activity. Several infrastructure projects are underway across 57 of 1,190 islands situated southwest of Sri Lanka and India on the Indian Ocean.
Current projects include the revised master plan for Hulhumalé, 8 km northeast from the capital of Male and built on 468 hectares of reclaimed land. Belgian Dredging International completed the second 244-hectare expansion phase of Hulhumalé in 2015, pumping six million cubic meters of sand from the seabed to raise the island to over 2 m above sea level.
After a temporary halt due to environmental concerns, the Hulhumalé Phase 3 land reclamation project has resumed. The project aims to reclaim 63 hectares, with 23 hectares already completed by Sri Lanka-based Capital Marine and Civil Construction (CMCC). The Hulhumalé project has undergone multiple phases of development. Initially, it cost $63 million, followed by an additional $50 million for further expansion. A recent $130-million housing development awarded to India’s National Buildings Construction Corporation (NBCC) is funded through a loan assistance program.
Frontline of Climate Change
As the world’s flattest country, with the highest natural point only 2.4 m above sea level, climate change and sea level rise are an immediate concern for the Maldives. Construction projects face significant challenges including weather, rising costs; labor dependency on global sources; financing, transparency and policy gaps; and a dependence on imports of materials.
The $1-billion expansion of Velana International Airport (VIA), the country’s sole gateway for international visitors, is a key project for a national economy primarily dependent on tourism. Multiple revisions to agreements and design changes over the years have resulted in chronic delays, but the expansion is now expected to be operational in October.
Saudi Binladin Group holds a design-build contract for the 78,00-sq-m new terminal that will accommodate over 7 million passengers annually. Beijing Urban Construction Group constructed the new 3,400-m-long, 65m-wide runway. Landrum and Brown served as the lead consultant for runway and seaplane terminal studies. ELS International, specializing in prefabricated construction and landscaping, was contracted by Saudi Binladin to execute piling works. SETEC was responsible for the building information modeling design from concept to final development. Singapore Surbana Jurong served as the project management consultant, overseeing airside redevelopment, passenger terminal expansion, construction works, and the design review process, while QSi Consultancy Group handled contracts.
The service roads connecting airport facilities have yet to be commissioned. BUCG is building increased capacity from 100,000 to 300,000 metric tons for the cargo terminal and the 37,000-sq-m fuel farm, which will boost storage capacity to 100 million liters. Additionally, BUCG last year was awarded the contract to reconstruct a 3,200-m taxiway to improve operational efficiency.
With a capacity to accommodate 100 seaplanes, the 18,000-sq-m, $50-million Noovilu Seaplane Terminal built by BUCG at VIA on reclaimed land is the largest in the world. It includes a seaplane hangar on an additional 14,000 sq m and a terminal with 42 lounges.
China has played a significant role in Maldivian infrastructure development, primarily through its Belt and Road Initiative (BRI). In 2023, China pledged $11 billion in additional investments to support transportation, tourism, and urban development in the Maldives. While specific project details remain undisclosed, past BRI-backed projects include the Sinamalé Bridge, connecting Malé, Hulhulé, and Hulhumalé. However, concerns over debt sustainability persist.
Logistical and procedural challenges have resulted in delays of China-backed projects in the Maldives. The Malé Road redevelopment project, initially set for 2024, was postponed to 2025 due to bureaucratic approval processes and feasibility studies. The Gulhifalhu roads and municipal infrastructure project, awarded to China Machinery Engineering Corporation (CMEC), has also experienced setbacks in its survey and design phase. The project includes electricity distribution, water and sewerage systems, and road development, and is expected to progress once technical assessments are completed.
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