Maldives Airports Company Limited (MACL) has agreed to pay MVR 1.76 billion (approximately USD 114 million) to Capital Marine and Civil Construction (CMC) under a settlement for reclamation work previously carried out in Hulhumalé Phase 3, Giraavaru Falhu and Thilafushi.
Audit reports indicate that the payment will be channelled through MACL’s subsidiary, MIID. Of the agreed amount, MVR 323.8 million had been paid by the end of last year, with the remaining MVR 1.43 billion scheduled for payment in the current year.
The settlement changes the original 2023 arrangements, under which CMC was to receive land and development rights rather than cash. Under the new terms, CMC will be paid in cash while the land assets are transferred to MIID.
CMC had earlier suspended work citing non-payment and unclear cost-recovery terms. The audit classifies the transaction as an acquisition of assets under construction.
The arrangement has raised questions about the financial structure of major reclamation projects and the use of state-linked companies for settlement payments.
