Maldives' government has officially inaugurated its controversial $800 million project to develop the country's main airport by a Chinese contractor, an initiative that would likely annoy its neighboring country India.

President Abdulla Yameen officially kicked off the project in a ceremony on Wednesday night at the Dharubaaruge convention center.

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"The president stated that with the expansion, the airport would become the economic backbone of the Maldives and that this would be the main gateway of modern day development," said an official statement issued by the government.

The government awarded the contract to China's biggest construction company, Beijing Urban Construction Group, in 2014 for the creation of the second runway of Ibrahim Nasir International Airport (INIA), which will extend up to 3.4 kilometers in length. The Chinese company is known for developing a number of airports in China and the Beijing National Stadium.

Maldives said that the expansion intends to accommodate the growing number of tourists to one of the world's top holiday and honeymoon destination. Moreover, with the upcoming development, an Airbus A380, which could carry around 7.5 million tourists per year, will then be able to land at the airport.

Adil Moosa, managing director of Maldives Airports Company (MACL), told news agency Haveeru that the contract allocated a 36-month timeframe for the project and is anticipated to be finished by the end of 2018.

MACL is looking at proposals submitted for the development of INIA's new terminal. Two other foreign contractors have expressed interest to the $300 million-worth project.

TagsMaldives, china, Airport, India, Ibrahim Nasir International Airport, Maldives Airports Company