Malé, Maldives – The Maldives Tourism Development Corporation (MTDC) has confirmed that preparations are underway to begin the development of Naagoashi Island in Haa Dhaalu Atoll as a resort by the last quarter of this year. Despite being designated for tourism, Naagoashi has remained undeveloped for the past 17 years.
During MTDC’s Annual General Meeting at the Manhattan Business Hotel, Managing Director Ahmed Niyaz acknowledged the numerous obstacles and challenges the project has faced. However, he assured attendees that final preparations are being made to start construction later this year. “Our aim is to commence work at Naagoashi in the fourth quarter of this year,” Niyaz stated, underscoring MTDC’s commitment to the successful completion of the project.
The journey to develop Naagoashi as a resort has been plagued with difficulties. Originally contracted to Russian company Threek International Pvt Ltd in 2007, the project experienced significant delays, leading to the termination of the sublease in 2016 due to incomplete construction and unpaid rent. At the time of termination, 37 percent of the work had been completed, including villas, restaurants, and other structures that were nearly ready.
Following the termination, the government reclaimed Naagoashi from MTDC in 2017. However, in 2020, the island was once again leased to MTDC, which then partnered with Dubai’s Galadari Holdings for the resort’s development. This agreement was also terminated last year after no progress was made, negatively impacting MTDC’s revenue.
Despite these setbacks, MTDC remains resolute in bringing the Naagoashi project to fruition. The island, envisioned to host a 600-bed resort, is expected to be a significant addition to the Maldives’ tourism sector once completed. As MTDC moves forward with its plans, the successful development of Naagoashi will mark a crucial milestone in overcoming the challenges that have long stalled its progress.
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