Maldives’ Game-Changing Ferry Expansion: India’s $6.48M Grant to Transform Connectivity
India gives \$6.48M to Maldives to build 12 new ferries and improve connectivity.
The Maldives government announced on Saturday its plan to utilize a USD 6.48 million grant from India to significantly expand its public ferry network, aiming to enhance maritime connectivity and uplift community livelihoods across the archipelagic nation. The initiative, part of the High Impact Community Development Project (HICDP) Phase III, was formalized through 13 Memorandums of Understanding (MoUs) signed with India on May 18, 2025, as reported by state-run Public Service Media (PSM News).
The grant, equivalent to MVR 100 million, will fund the construction of 12 new ferries, including four backup vessels for the existing Raajje Transport Link (RTL) network and additional ferries to extend services to more atolls. Deputy Minister of Transport and Civil Aviation Ibrahim Yasir, speaking on PSM News’ ‘Raajje Miadhu’ program, confirmed that work on commissioning these ferries is underway. Key infrastructure projects, including a main ferry terminal in Zone 2 and a ferry hub in Ungoofaaru, will also be developed using the grant, with mobilization set to begin soon.
The Maldives government has committed to extending RTL services to all remaining atolls by the end of 2025, accelerating the original timeline from 2027. Foreign Minister Abdulla Khaleel, speaking at the MoU signing in May, emphasized the projects’ broader impact, stating, “These are more than just infrastructural developments; they are lifelines to communities, designed to address local needs and bring lasting socio-economic benefits.” The initiative, announced during President Mohamed Muizzu’s state visit to India in October 2024, underscores the strong bilateral ties between the two nations and India’s role in supporting Maldives’ development goals.
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By enhancing ferry services, the project aims to improve accessibility for remote communities, boost local economies, and strengthen connectivity across the Maldives’ dispersed atolls, fostering sustainable growth and resilience.
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