Villa Group to Receive USD 18 Million Compensation for Kaadedhoo Airport
The government has agreed to compensate Villa Group with USD 18 million, or equivalent tax relief, in exchange for returning Kaadedhoo Airport.
The airport was originally leased to Villa Air in 2013 under a 50-year agreement. However, the lease was cancelled in 2017 during former president Abdulla Yameen’s administration. Villa Group challenged the cancellation in court, and the Civil Court ruled in their favor. Both the High Court and the Supreme Court upheld the decision, and the airport was returned to Villa in March 2022.
Since regaining control, the airport has drawn criticism over poor service and limited maintenance. The government has expressed interest in taking over the facility to redevelop it. Villa Group chairman Qasim Ibrahim indicated that the company was willing to vacate the site if properly compensated. Initially, Villa sought USD 21 million.
On Tuesday, the Economic Council approved a compensation package of USD 18 million, which will be paid in instalments over 18 months. The payment can be made either in cash or as a set-off against Villa’s tax obligations.
Qasim Ibrahim confirmed the agreement on X, explaining that it accounted for the company’s investment and losses at the airport.
“We are leaving Kaadedhoo to the government knowing the huge benefits of turning it into an international airport,” he wrote.
The agreement has drawn some political criticism. At a rally on Thursday, former president Yameen accused the government of corruption, claiming that USD 30 million in taxes had been waived in the deal. Qasim dismissed the remarks, saying that Yameen had exaggerated the facts to mislead the public.
The settlement marks the latest development in a long-running dispute over Kaadedhoo Airport, highlighting the challenges of balancing private investment with government plans for national infrastructure.