HUVADHOO CITY – PROPOSED CONCEPTUAL MASTER PLAN
BRIEF INTRODUCTION – TO BUILD & OPERATE KAADEDHDHOO INTERNATIONAL AIRPORT (KDM) & TWO RESORTS ISLANDS PLUS DEVELOP & SELL PROPERY IN THINADHOO (OPTIONAL)
Prepared by Asian Academy of Aeronautics Pvt Ltd Gan International Airport, Addu City, Maldives
Contents
PAGE
1. Introduction ...... 3
2. Development of Huvadhoo Atoll, South Maldives ...... ………………………..3
3. Overview of the Master Development Plan...... 5
4. Incentives offered to the Investor...... 8
5. Estimates and Assumptions factored into compiling the pre-feasibility study…………………………………….……………. 8
6. Other Revenue generating opportunities not included in this report………………………………………………….……………. 9
Figure 1. Map of Maldives and Huvadhoo atoll marked with a RED rectangle………………………………………………………….3
Figure 2. Map of Huvadhoo with all the active resorts marked and the distances from KDM…………………………………..4
Figure 3. List of all the active & developing resorts in Huvadhoo atoll including the no of beds…………………………….…5
Figure 4. Proposed Masterplan…………………………………………………………………………………………………………………………………5
Figure 5. KDM runway - Present + Future (modified)………………………………………………………………………………………………. 6
Figure 6. Two Resort Islands – Extract from proposed masterplan………………………………………………………………..………… 8
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1. Introduction
The project primarily entails the following activities in the adjacent islands of Kaadedhoo, Maagoderehaa, Kafena and Thinadhoo islands in Huvadhoo atoll, in 3 phases.
Phase 1 involves building and operating an International airport in Kaadedhoo (KDM), Phase 2 involves building and operating 2 Resorts (total 175 rooms), one each in Maagoderehaa and Kafena islands, Phase 3 involves developing and selling properties in Huvadhoo City / Thinadhoo Island (optional)
The estimated * Investment Summary & ROI is noted in the table below –
TOTAL ROI SURPLUS REVENUE INVESTMENT IN 5 YEARS IN 5 YEARS US$ %AGE US$ PHASE 1 - KDM AIRPORT 18,400,000.00 66.60% 12,254,500.00 PHASE 2 - 2 RESORTS 52,500,000.00 108.74% 57,088,281.25
70,900,000.00 97.80% 69,342,781.25
* Details available
2. Development of Huvadhoo Atoll, South Maldives
Huvadhoo atoll is in the South of FIGURE 1 Maldives and is also the world’s largest atoll. It is locally called Huvadhoo Atholhu. (refer FIGURE 1 Huvadhoo, RED square).
There are 21 inhabited & more than 200 uninhabited islands ranging from 5Ha to 500Ha. The current residential population is 45,000 with an annual visiting population of more than 100,000. North Huvadhoo is 200 Nm from MLE.
The development of more than 130 resorts in North of Maldives, has almost reached a saturation point and hence the Govt of Maldives is now promoting development of resorts in South Maldives (mainly in Huvadhoo atoll).
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Presently there are Seven (7) FIGURE 2 resorts in operation & 15 resorts under construction in Huvadhoo atoll. (refer FIGURE 2), with much more in the pipeline. These resorts are being facilitated by only two domestic airports within the atoll viz Kaadedhdhoo (KDM) & Kooddoo (GKK) airports.
Presently more than 300 tourists, heading for resorts in Huvadhoo atoll, arrive daily, thru these two domestic airports (ie. KDM and GKK) in Huvadhoo atoll, carrying tourists who arrive in MLE (the capital of Maldives) on international flights. By next season (Nov ’18) this figure will rise to more than 600 tourists daily, heading for resorts in Huvadhoo atoll via these two domestic airports (ie. KDM and GKK). Refer Figure 3 below for presently active and developing resort and bed details.
FIGURE 3
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The transit in to and out of Maldives via MLE for those tourists heading for resorts in Huvadhoo is an absolute inconvenience to the tourists, in terms of –
(a) Loosing valuable holiday time spent in transit (b) Loosing time and effort in Checking-out from international flights and checking in to domestic flights and vice versa on the return, and (c) Additional airfares spent on the domestic flights.
Therefore in consideration of the above and the increase in the number of tourists bound for resorts in Huvadhoo atoll, makes it highly viable to set up an international airport in Huvadhoo atoll to facilitate the resorts in Huvadhoo atoll and other southern atolls. To this end the Govt of Maldives is considering inviting investors to build and operate an international airport within Huvadhoo atoll, enabling the tourists to fly on international flights directly into Huvadhoo atoll with easy reach to their respective resorts via speed boat or other means.
3. Overview of the Master Development Plan
FIGURE 4 – THE MASTER PLAN
Phase 1 • Building & operating Kaadedhoo International Airport (KDM) • Building & operating an Oil terminal with Bunkering facilities in KDM • Developing other infra structure in KDM
Developing other infrastructure will include –
✓ Navigational Aids and Runway Lighting. ✓ Since fueling facilities are not available in KDM, a fuel farm to store aviation turbine fuel and other required oils will have to be built to service the aircraft. ✓ The present passenger terminal and other basic infrastructure will suffice initially but an improved state of the art Pax terminal may have to be built once traffic increases. ✓ A cargo terminal with customs facilities will also be needed since most of the resorts in Huvadhoo atoll and those close to Huvadhoo atoll will prefer to receive their perishables in KDM as opposed to the traditional transport of such cargo in boats fitted with cold rooms etc. which takes more than 5 days to arrive in their resorts compromising quality. ✓ Increased Power Capacity and wherever possible to integrate the power supply with renewable energy sources
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Revenue generated from operating the airport is as follows –
➢ Collection of Airport Development Fee from each international pax departing KDM. Present fees in MLE are - ✓ Non Maldivians – US$ 25/- and ✓ Maldivians – US$ 12/- in MLE ➢ Collection of all the Fees due to the aerodrome operator as per the AIP ➢ Ground Handling Fees levied on each aircraft landing as per the Airport management ➢ Re-fueling Fees
Kaadedhoo International Airport (KDM)
The Island of Kaadhedhoo is currently operated as a domestic airport. The runway is short, 1200 meters X 30 Meters and a PCN (Pavement Classification Number) of 15, which is not suitable to facilitate modern Commercial turbo prop and Jet aircraft of today, which needs runway lengths ranging from 2500 to a max of 3000 meters and a minimum PCN of 35.
The shallow waters (approx. 2 meters deep) around Kaadedhoo Island makes for very cost effective land reclamation to build a 3000 meter runway meeting the requirements for an international airport that will facilitate the operation of most local, regional, medium range, long range and cargo aircraft.
Re-orientation from the present domestic runway heading may be required in order to achieve a minimum 3000 meter runway length with a minimum PCN strength of 35. The existing runway with a few modifications may also be used as a taxiway
The land area of Kaadhedhoo Island is 172Ha and there are three small Island within the Kaadhedhoo house reef. The area of Kaadhedhoo house reef is 514Ha. KDM is 45 minutes flying time from Male’ city (Valena International airport). The Atoll capital Thinadhoo is just 5 minutes by speed boat.
FIGURE 5
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Out of the 2 domestic airports in Huvadhoo atoll, ie. KDM and GKK, only KDM has the potential to be modified and extended to a 3,100 meter international runway by virtue of the very shallow waters around the Kaadedhdhoo island. (refer yellow line in FIGURE 5 above for modified and extended runway)
Most of the existing infrastructure that is available in KDM that is servicing the present KDM domestic airport can be used or modified for the proposed international airport.
Phase 2
• Building & operating 2 Resort hotels in close proximity to KDM with a total of 175 Water villas
Maagoderehaa & Kafena Island
Both of these islands are uninhabited. There is a small pond just in the center of each of these 2 Islands. The land area of each Island is approx. 10Ha and the reclaimable lagoon area for both islands is approximately 190Ha with an average depth of 2m in mid tide. It is proposed to develop both these Islands as 2 resort islands using the natural lagoon with reclamation. A total of 175 Water Villas may be built between these 2 islands.
Revenue generated from operating the resorts are as follows –
➢ Hiring of Rooms ➢ Food & Beverage including Bar Sales ➢ Sports & Recreation including -
✓ Sky Diving ✓ Jet Skiing ✓ Para Sailing ✓ Scenic Flights ✓ Flyboarding ✓ Snorkeling ✓ Water Skiing ✓ Wind Surfing ✓ Underwater Diving, and much more
Phase 3 (Optional)
• Development and Sale of Residential Units along with other infrastructure in Huvadhoo City / Thinadhoo Island
The island capital of the region is Thinadhoo, with a population of 8000, which was formerly known as Havaru Thinadhoo. Earlier in the 20th century, Thinadhoo was the capital of all the 292 islands that make up Huvadhoo Atoll. The existing land area is 123Ha. The reclaimable lagoon area is approximately 650Ha with an average depth of 2m in mid tide. The reclaimable lagoon is about 8km in length and 0.5km in width.
Huvadhoo city / Thinadhoo island conceptual master plan
Huvadhoo city can be developed over 3 neighborhoods in approximately 200Ha of land each. It can be developed with modern housing flats, commercial zones, entertainment parks, stadiums open green parks including administrative areas and harbor with a modern ferry terminals.
• Other Areas of Development that may be possible in Huvadhoo City / Thinadhoo Island are
➢ International Residential island (Private Villas for short and long leases) ➢ Industrial island ➢ Yatch Mariner ➢ International Gaming Centre Page 7 of 9
4. Incentives offered to the Investors
➢ A Minimum 2 Islands in close proximity to KDM for resort development without any acquisition fee. These 2 islands can accommodate 75 and 100 rooms respectively. (refer area circled in RED in FIGURE 6 below)
FIGURE 6
➢ A request of 1 additional island for resort developments in Huvadhoo atoll excluding Maagoderehaa & Kafena Islands noted above will be considered.
➢ A lease term of between 49 and 99 years will be considered for operating KDM International airport and the resorts acquired.
➢ Development and sale of properties in Huvadhoo City / Thinadhoo Island (Optional)
5. Estimates and Assumptions factored into compiling the pre-feasibility study
• All investment estimates are rated at current costs
• KDM Revenue in the first year of operations is based on the 10 actual domestic flights a day currently being operated into KDM.
• KDM Revenue from the second year onwards is assumed as follows - • Second Year - 1 international flight and only 5 domestic flights per day, • Third Year - 2 international flights and only 5 domestic flights per day, • Fourth year and onwards - 3 international and only 5 domestic flights per day.
• Resort revenues are based on a 65% year round occupancy which is 10% less than the present year round resort occupancy in Maldives of 75%.
• Resort revenues have been based on room tariffs of US$ 400 per double room, whilst the average year round room tariff is more than US$ 600 per double room. Page 8 of 9
6. Other Revenue generating opportunities not included in this report
(a) Build and operate a third resort island within the Huvadhoo atoll.
(b) Provide Airport Transfers between KDM and the resorts in Huvadhoo atoll using Speed boats and Hovercraft and Sea Planes for resorts in the nearby atolls.
(c) Set up and Operate a domestic and international airline based out of KDM.
(d) Expand the fuel farm to provide aviation fuel for aircraft transiting and overflying KDM
(e) Set up and operate a Maintenance Repair and Overhaul (MRO) facility in KDM to service Maldivian and foreign registered aircraft. Presently the Civil Aircraft Register of Maldives published by the Maldivian Civil Aviation Authority declares that there are more than 90 Maldivian registered aircraft operating in Maldives. There is no MRO in Maldives at present and hence there is a tremendous scope for an outsourced MRO in Maldives.
(f) Set up and operate an EASA compliant part 147 and 145 centre to train Aircraft Maintenance Engineers. A fully functional EASA online examination centre is already being operated by the Asian Academy of Aeronautics PVT Ltd, Maldives.
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