Addu City, Maldives – The Addu Airport Development Project is facing delays due to a land dispute involving labor quarters located in the middle of a key road planned for the project. Kaimoo Travels and Hotel Services, which operates Equator Village, is reportedly demanding $25 million for relocating the buildings.

Addu International Airport (AIA) states that the land belongs to the airport and was transferred to a third party in 2013 in violation of regulations. AIA plans to use the area to build a departure road, parking space, and install utility systems such as sewerage, water, and streetlight cables.

Despite efforts to proceed without disrupting resort operations, AIA warns the dispute could impact the project timeline. The issue has been referred to AIA’s board for a decision on legal action.

Sources also say Kaimoo is asking for lease extensions for Summer Island and Enboodhoo Village resorts to 50 years, which the government has not agreed to. Several government offices in the area have already vacated to make way for the project.

AIA maintains that it never leased the property to Kaimoo and that development cannot move forward unless the area is cleared. The dispute is now a key test for balancing tourism interests with national infrastructure development.