India announces connectivity projects with Maldives to enhance trade ties

India, on Thursday, announced that it shall be funding the implementation of the Greater Malidivian Connectivity Project(GMCP) through a line of credit(LOC) worth $400 million and a grant of $100 million. The project shall link the capital of Male with the Gulhifalhu port and Thilafushi industrial zone along with a regular cargo ferry service between the two nations to boost trade and commerce. 

"We are also starting an air travel bubble with the Maldives to sustain and promote the dynamic people to people ties between the two countries," said External Affairs Minister S Jaishankar in a tweet during a meeting with Maldives foreign minister Abdullah Shahid. 

"India will fund the implementation of the Greater Male Connectivity Project(GMCP) through a $400 million Line of Credit(LOC) and $100 million grant. The 6.7 km bridge project connecting the capital with Gulhifalhu Port and Thilafushi industrial zone would help revitalize and transform the economy of the Maldives," added Jaishankar. 

"India's total financial commitment in the Maldives covering all loan and grant projects is well over US$ 2 Billion, all of which have been announced after President Solih came to power in November 2018, " added Jaishankar and Shahid. 

The project is high visibility which would be the largest ever infrastructure project to be implemented. The project was an election promise by the ruling Maldivian Democratic Party(MDP) for which the current president of Maldives had personally sought India's assistance during a meeting with S Jaishankar in September 2019.

"It is noteworthy that approvals for a project of this scale were obtained in less than a year. This is unprecedented and is testimony to the special relationships between India and Maldives," said sources. 

"The GMCP involves the construction of 6.732 km bridges and causeway links between the islands of Villingilli, Gulhifahu, and Thilafushi with Male. Out of the total length, the bridge-section will be 2.08 km, 780 m causeway, and 3.87 km embankment and causeway section," further added sources. 

"The project shall help in demonstrating India's overarching presence in the Maldives through a high-visibility project in the Greater Male region and showcase the expertise of India in conceptualizing and implementing a complex infrastructure project of this scale," further added Jaishankar and Shahid. 

The project has got the potential to change the economic landscape of Mauritius. The project would be an infrastructure complement to the Gulhifahu commercial port, which is being done under an Indian Line Of Credit(LOC) worth US$ 800 million. 

As per sources, "the current port of Male has already reached its complete capacity and the government has now shifted the port of Male to Gulhifalhu. This has given the rise to the need of considering the development of link bridges to the three islands.'' 

"While fishing and tourism had come to a grinding halt in March due to the COVID pandemic, the economy of the nation was under immense strain. Financial assistance had been requested personally by the president of Maldives, during his telephonic conversations, " further added the sources. 

"Right from the beginning of March, India has proven that they would stand with the Maldives in any crisis. India had donated 5.5 tonnes of essential medicines, helped in the evacuation of Maldivians from Wuhan, provided 580 tonnes of food aid, and deployed a medical assistance team to help the people of Maldives, " further added sources. 

Sources have mentioned that the air travel bubble shall help the people immensely and the country shall be the first in the region to get the facility. 

At present, seven projects in the Maldives have been going on with the USD 800 million Line Of Credit(LOC) given by India. These include water supply and sewerage systems on 34 islands, Addu Development Project- Road development and reclamation, expansion of Maldives Industrial Fisheries Companies(MIFCO), Gulhifalhu Port project among others.