The recent announcement of Afcons, an Indian company, signing a contract for the largest-ever infrastructure project in Maldives – the Greater Male Connectivity Project (GMCP) – has gained significant attention. The project finds its roots in bilateral discussions between India and the Maldives, with conversations going back to September 2019 when India’s External Affairs Minister visited Male.
The Greater Male Connectivity Project
The GMCP intends to construct a 6.74 km-long bridge and causeway link between Male and nearby islands such as Villingli, Gulhifalhu, and Thilafushi. Designed to function on renewable energy, the project’s funding is facilitated by a grant of USD 100 million alongside a Line of Credit (LOC) of USD 400 million from India. Beyond being the largest project India carries out in the Maldives, GMCP also earns the distinction of the biggest infrastructure project in the Maldives as a whole.
Economic Significance of GMCP
GMCP is regarded as the economic lifeline for the Maldives. It promises to significantly enhance connectivity between the four islands, which host about half of the Maldivian population. The resultant dynamism within Maldivian transport and economic activities will provide a major boost to the island nation’s economy.
India-Maldives-China Relations
GMCP surpasses the grandeur of the Sinamale Bridge, constructed with Chinese assistance, that links Male with Hulhumale and Hulhule. Despite completion in 2018, the Sinamale Bridge’s financial implications, involving expensive commercial loans from China, have led to concerns about China’s alleged “debt-trap diplomacy”. The improvement in India-Maldives relationships following the election of a new pro-India government in the Maldives has assuaged these worries to some extent.
India-Assisted Projects in Maldives
Apart from GMCP, numerous India-assisted projects are underway in the region. These include water and sewerage projects on 34 islands, reclamation projects for the Addu island, a port on Gulhifalhu, airport redevelopment at Hanimaadhoo, a hospital and a cricket stadium in Hulhumale. India had also announced a USD 800 million Line of Credit to the Maldives in December 2018.
Recent Developments in India-Maldives Relations
Recently, the two nations agreed to work on “four pillars” of security cooperation during a Deputy National Security Adviser-level meeting in August 2021. This meeting, hosted by Sri Lanka, also saw India welcoming the election of Maldives’ Foreign Minister as the President of the 76th session of the United Nations (UN) General Assembly (GA). In November 2020, four Memorandums of Understanding (MoUs), related to High Impact Community Development Projects and Cooperation in Sports and Youth Affairs, were signed between India and the Maldives. Moreover, India came forward with a comprehensive relief package in August 2020 to counter the economic impact of the Covid-19 pandemic in the Maldives.
Bright Future Ahead
The GMCP isn’t merely an ambitious project – it signifies the strengthening of ties between India and the Maldives. The agreement stipulates completion of the bridge by 2023, underlining India’s commitment to its Neighbourhood First Policy. As the Maldives battles with economic hardships due to the Covid-19 pandemic and previous debts, this project cements India’s role as a committed development partner.