The government's flagship project of developing Ras Male' on the Fushidhiggaru lagoon in South Male' atoll will be undertaken by giving 10 hectares of land in Hulhumale' and 60 hectares of land from Fushidhiggaru lagoon to CMC, Urbanco has said.
"10 hectares will be allocated from Hulhumale' and 60 hectares from Rasmale'. In return, we get 1,093 hectares of land. It will be accumulated into HDC's asset," Urbanco Managing Director Fazul Rasheed told a news conference today.
When asked about the period for which the land will be allocated, he said it will be allocated for the development period. That is 49 years + 50 years, he said.
This means that the land will be owned by the company for 99 years. The company can sell the land at any price in accordance with the Hulhumale' master plan, he said.
The project is being carried out with a corporate guarantee without any impact on Urbanco's cash flow, Fazul added.
The proposed state budget for 2024 included MVR 400 million to start the Ras Male' project. But the Parliament reallocated the funds for ongoing projects.
However, the government, through Urbanco, started the project without revealing financial details.
Fushidhiggaru lagoon covers an area of approximately 1,280 hectares. The government plans to reclaim 1153 hectares.
Although the government has revealed the area to be reclaimed, the land elevation and depth of the lagoon, the estimated cost of the project remains a secret. It was not disclosed at today’s press conference as well.
Experts who have worked on land reclamation and shore protection say the project will cost at least USD 500 million (MVR 7.7 billion).
