India to assist with Gaadhoo port project previously given to China

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The Maldives government recently decided to move forward with the Laamu Gaadhoo transshipment port project in collaboration with India. This comes after the project was initially awarded to a Chinese company, CAMCE Company Limited. During President Dr. Mohamed Muizzu’s visit to India, both countries agreed to work together on developing transshipment ports at Gaadhoo in the south and Ihavandhippolhu in the north. But there’s confusion surrounding the status of the Gaadhoo project.

Back in April, a Memorandum of Understanding (MoU) was signed with China’s CAMCE to establish an integrated maritime hub at Gaadhoo. The agreement included ambitious plans, such as developing a transshipment port, a cruise terminal, a yacht marina, and an eco-resort. However, satellite images show no signs of work being done at the site, raising questions about the project’s progress.

It’s worth noting that CAMCE, the Chinese company involved, has a troubled reputation. It’s been blacklisted by major international banks, which only adds to concerns about its ability to handle a project of this scale. The MoU was signed by Maldives Ports Limited (MPL), but the government has yet to clarify whether the agreement with CAMCE still stands or if it has been canceled.

This lack of clarity has left many wondering how the government plans to carry out the project in collaboration with India. If the partnership with CAMCE is still active, how will it fit into the government’s new plans with India? So far, the government has not provided answers.

As for the Ihavandhippolhu project in the north, it is being developed as part of a Special Economic Zone under the Maldives Industrial Development Free Zone (MIDFZ). While this project has not yet been awarded to any company, it remains a key pledge of President Muizzu’s government, alongside the development of the Gaadhoo port. These transshipment ports are seen as vital for boosting the Maldives’ economy by positioning the country as a major shipping hub in the region.

The government’s announcements sound promising, but with no clear progress on the ground, it remains to be seen how these projects will unfold and whether they will truly deliver on their potential. For now, both Gaadhoo and Ihavandhippolhu remain projects to watch—full of promises, but with many unanswered questions.