Kaimoo Travels and Hotels Services, the operator of Equator Village in Gan Island of Addu City, has proposed a USD 25 million compensation to vacate and relocate the rooms required by Addu International Airprot (AIA) to develop a road on the island as part of its airport expansion project.
This was reported by Mihaaru News, citing several unnamed government sources. According to Mihaaru the government has not yet accepted the offer, due to which Kaimoo is refusing to vacate the rooms from its labour quarters that is in the way of the road path being developed.
In addition to the USD 25 million in compensation, Kaimoo also proposed to extend the lease terms of two of resorts in the Malé Atoll, Summer Island Maldives and Embudu Village, for another 50 years, source said.
Kaimoo, in a statement Thursday, said that it was working with the government to find fair solutions to the issue of Equator Village's staff quarters fall within the area required for the construction of the main road with the AIA expansion project. The also said they hope it would be resolved soon.
Kaimoo went onto say that it is working with the ministry of tourism to find a solution to the issue and that necessary solutions have been submitted to the ministry.
A source told Mihaaru News that the proposal was first made during the government of former President Ibrahim Mohamed Solih. According to reports, talks were held with the hotel's management back in 2023 regarding the staff quarter room relocation, specifying which rooms had to be moved.
However, Kaimoo reportedly wants to give up the entire 4,000 square feet altogether, and proposed a compensation of USD 25 million after conducting a valuation of the property.
"They have done an audit. The audit shows that it [the estimated value of the property] would be USD 24 or USD 25 million. However, it has been learned that the government still does not believe that compensation needs to be provided to relocate the building. This has been the case for the last two years," an official with information of the matter told Mihaaru News.
The staff quarters in question was built in the 1950s by the British during their protectorate in Addu atoll. Mihaaru reported citing a source, who alleged that a large area of the property is used by Equator Village as storage space, with seemingly little expenses made to renovate or repair it.
Despite Kaimoo claiming that their kitchen, staff mess, laundry, garage, staff recreation area and squash court are in the way of the road development plans, AIA's statement said only a few rooms of Equator Village's labour quarters were impacted. AIA also said that the rooms which need to be demolished were also informed to Equator Village's management. A replacement land was also offered to the hotel, AIA said, adding that a large portion of the road project was completed on the assumption that Equator Village would vacate the rooms.
"In 2013, other buildings there were also taken for the resort's purposes. They were taken temporarily. In 2017, the land was taken [from AIA] saying it was a tourist area, during [former] President Yameen's administration under the supervision of the then Tourism Minister and Vice President later, Adeeb," an official told Mihaaru News.
"On August 17, 2023, the company visited the labour quarter area and identify the rooms that need to be vacated to Equator Village's management. Based on this company's findings from that day with contractors and surveyors, assurance was also given to them [Equator Village] the hotel's operation would not be disrupted," AIA's statement detailed.
The expansion of the Gan International Airport started in June 2023, funded by a USD 30 million line of credit by India. The project was due to be concluded by March this year, but was delayed due to various reasons and extended until November this year. The project contactor is Renaatus, an Indian company while the project management consultant is Assystem Stup.
AIA, in a later statement said that it plans to take the matter to court, as it believes the land belongs to the company.