The Maldives Fund Management Corporation (MFMC) has awarded the contract to Atoll Works Pvt Ltd to reclaim and develop 16 private islands and luxury resorts in Gaafarufalhu as a mega tourism project in the country.

MFMC said yesterday that the agreement will develop 14 private islands and two luxury resorts in Gaafarufalhu. Another 40 hectares of land will also be dredged in the lagoon, the MFMC said.

Therefore, 106.91 hectares of land will be dredged under the agreement. This is the first project in Kaafu Atoll to dredge so many islands in the same lagoon.

MFMC said the dredging and rivetment work will cost USD 36 million. Three million cubic meters of sand will be required for the dredging work, and at a rate of USD 7.8 per cubic metre, a total cost of USD 29,232,774 is expected according to the company.

That amount is significantly less than the cost of dredging projects currently underway in the Maldives, the MFMC said.

The MFMC will reimburse the contractor for the cost of the project by selling the islands on a long-term lease basis after the dredging is completed, the MFMC said.

The Gaafarufalhu has been entrusted to MFMC for development under the Integrated Tourism Development Concept. The conceptual master plan for the development of the lagoon has been completed and the project is the first project to develop a private island under the Integrated Tourism Development Concept.