Population and development consolidation programme 2008 (It was a dream)

Project Description

The government has decided to reclaim a new island of 144 ha in Vaavu atoll, which will consist of industrial/commercial land, a domestic airport and a residential area. The total residential area of nearly 50 ha is planned for 4,320 residents

This mega project consists of

• reclamation of 144.42 ha of land in a lagoon with an average depth of 0.8m to a height of 1.2m
• development of a domestic airport with a runway of 1200m and basic terminal facilities
• development of a port for commercial use for the developer and a island harbour for residential area
• housing for approximately1500 people (estimated immediate relocation)
• development of social infrastructure; schools, hospital, community centre, administrative facilities, sports facilities and mosques
• development of utilities such as power house, solid waste collection site, sewerage system, desalination plant (common use for residential and commercial use)

Communities from within Vaavu atoll and from other atolls will be relocated to this new island under the Population and Development Consolidation Programme (PDCP). As under the existing PDCP policy of the government any relocation is voluntary and free housing will be provided by the government only if the whole community is moving from an island.

Background

The biggest challenges to speedy and equitable development of the Maldives are the scarcity of land, limited natural resources and small pockets of widely dispersed populations. There are 194 inhabited islands in the country of which population ranges from 104,000 to less than 200. Larger populations are always a priority for government projects and favoured by private sector. This creates a trap of further reductions in population in smaller islands as the working age group and educated migrate, eventually leaving a socially and economically vulnerable community on the island with minimal facilities, lacking education, health and job opportunities. While most atolls have a handful of islands which are in this situation, the atoll that suffers the most from these developmental challenges is Vaavu Atoll.

Vaavu Atoll (or Felidhe Atoll) consists of 19 islands of which only 5 are inhabited. The atoll is the registered home to 2,215 residents (December 2007) making it the least populated atoll in the Maldives. Vaavu Atoll also has the least area inhabitable; a total of 56.2ha is inhabited. In fact Vaavu atoll has the second smallest inhabited island in the Maldives, Rakeedhoo, with an area of merely 6.3 ha. Therefore, given the natural disadvantages for of the atoll, a more rapid development for the atoll population depends critically on the consolidation of the scattered communities, on a land with potential for growth and development.

Under the Population and Development Consolidation Programme (PDCP) of the government the smallest and most vulnerable populations are relocated to larger, more populated islands with high standard of facilities or with development potential. The dilemma of Vaavu Atoll is that, while all the islands are small and vulnerable, there is no existing single island in the atoll with the space to support population movements from any other island. Furthermore none of the five inhabited islands have the potential for land expansion which has provoked the search for an alternative way to consolidate and develop this atoll.

Thus, the residents of three islands from Vaavu atoll have requested to reclaim new land in the southern lagoon, Fotheyo Falhu, of the atoll and to be relocated there. Fotheyo Falhu is one of the largest reefs in the Maldives, stretching from the southern side of the atoll to the eastern rim of the atoll. This is the only lagoon in the atoll with the potential for large scale land reclamation thus making it suitable for land development. A regional airport will also be developed with the island.

Proposed Financing

The project is proposed to be funded by private investors, who will be required to complete the following:

• Reclamation of the island and airport
• Coastal protection of island (exact requirement to be specified after EIA)
• Construction of airport with terminal facilities
• Contribution to residential area development (housing and infrastructure)

The investor can sub-contract the development any of these components

The investor will be selected based on factors such as speedy delivery of the project and maximum contribution to the development of the residential area. It is expected that the design and preparation of works will take up to 8 months maximum and the land area, housing, airport and minimal facilities will be ready for residents within two years since commencement of physical works.

The management of the airport and the residential area is not required by the investor. Thus after the development of land, the airport and agreed infrastructure for the residential area, the investor will not be required to be involved in the municipal affairs of the airport or the residential area.

Cost Recovery

The cost recovery of the project for the investor will be realised by the following sources of revenue generation.

The operation of three resorts

• Two of these resorts will for the industrial land reclamation and development of residential area and one resort for the development of the airport). The terms under which the resort will be leased and operated will be specified by the Ministry of Tourism and Civil Aviation.

Industrial land area

• A portion of the land reclaimed is available for commercial or industrial use for the developer.
• It can be used for any industrial or commercial use within the law of the country and can be subcontracted out to other parties for lease with full benefits to the developer.
• A commercial port and adjacency to the airport will enable the land to be used for many purposes, such as fish processing or other industrial activities.

Further information

The main co-ordinating agency for the project is the Ministry of Planning and National Development.

The Foreign Investment Services Bureau of the Ministry of Economic Trade and Development is currently working on opening up the project for investors.

Reference: http://planning.gov.mv