The state has decided to appeal a High Court order to immediately halt the land reclamation project of Gulhifalhu.
In a post on X, Attorney General Ahmed Usham said 80 percent of the reclamation work has been completed and the state will suffer great financial losses if the project is halted.
“[Therefore] the Attorney General's Office has now decided to appeal the decision in the Supreme Court,” Usham said.
Former State Minister at the Housing Ministry, Akram Kamaludeen said the government would have to pay USD 300,000 (MVR 4.6 million) to Boskalis for each day the work remains halted.
The land reclamation project of Gulhifalhu was handed over to Boskalis by the former government to provide land plots, build flats and establish an international commercial port.
The High Court ordered to halt the project until a final decision is issued in a related case ongoing in the Civil Court. The Civil Court earlier ruled that the project could continue while the case is ongoing. The High Court order was issued following an appeal of the Civil Court decision.
Environmental activist Humaida Abdul Ghafoor (Humay) filed the case saying the reclamation would cause irreparable damage to the environment in Gulhifalhu and the surrounding areas.
After comparing the financial loss to the state, the majority of judges who heard the case noted that irreparable and long-lasting damages might be caused if necessary measures are not taken to protect the environment.
The judges concluded that environmental damage was being done because the sedimentation levels were not maintained as stated in the Environmental Impact Assessment (EIA) of the project.
The petitioner in court noted that in some cases, sedimentation has reached 50 percent and 100 percent, according to sedimentation rate monitoring reports.
This is the first time a court has halted a major development project in Maldives because it is harmful to the environment.
