19 projects eligible for cross-subsidy investment, including USD 155M in security initiatives

President Dr. Mohamed Muizzu has declared 19 government projects eligible for cross-subsidy investment, including USD 155 million in domestic security and defense initiatives.

President Muizzu issued a presidential decree on Monday, which governs projects eligible for cross-subsidy investment and establishes the minimum investment thresholds applicable to such projects in the Maldives.

The decree was issued pursuant to an amendment to the Tourism Act, which requires the government to publish annually the minimum investment thresholds applicable to contractors undertaking key projects under cross-subsidy arrangements, in accordance with the government's investment policy aimed at advancing tourism development, infrastructure, climate resilience, homeland and national security, and social development across the Maldives.

The annex to the decree sets out 19 government projects deemed eligible for cross-subsidy arrangements. The minimum investment requirements for the projects total USD 236.25 million (equivalent to MVR 3.64 million).

The initiatives include USD 155 million in domestic security and defense projects. This includes the development of the juvenile rehabilitation facility Hope Island, and the development of a central prison complex.

The single biggest investment requirement was for defense projects. According to the decree, the government is seeking an investment of at least MVR 100 million for “projects to protect and safeguard the Maldives’ independence and sovereignty, and maintain peace.”

The decree also lists USD 25 million in tourism and civil aviation projects, including projects to develop international and domestic airports, the Asseyri Tourism Project in Addu, and projects to develop nature parks in each atoll and expand heritage tourism.

The other projects include USD 19 million in housing and infrastructure projects, including development of causeways, social housing, land reclamation, and establishment of utility services.

The decree also lists USD 17.25 million in environment, climate change and energy projects, including water and sanitation projects, establishment of composting plants in 50 islands, and establishment of waste management centers and waste transfer stations.

It also includes a USD 20 million project to build a high-performance center – aimed at empowering youth and developing sports facilities.