Government plans vehicle buyback program

Feb 29, 2024, 7:42 AM
Old vehicles at Male' industrial zone. -- Photo: Adhadhu file

Old vehicles at Male' industrial zone. -- Photo: Adhadhu file

The government has decided to launch a vehicle buyback program as part of solutions proposed for congestion in Male’, Transport Minister Mohamed Ameen said yesterday.

The vehicle buyback program would be an important step towards solving the problem, Minister Ameen said when he was summoned to Parliament’s Committee on Secondary Legislation.

“18 percent to 25 percent of people would give if payment is made on the spot after evaluation. Now when we carry out [this program], the situation can be kept from getting worse,” Ameen said.

While it was important to start the program soon, Minister Ameen said a budget would be needed. He said that MVR 500 million would be proposed in next year’s budget for the vehicle buyback program.

Old or disused vehicles are usually purchased under vehicle buyback programs. But new vehicles could also be bought.

Ameen said the vehicles bought under the program could be re-exported or used as scrap metal. Such programs have been carried out successfully in Singapore and Australia, he said.

“This is a program that they carried out in Singapore and Australia 10 or 12 years ago. It can be done after declaring the carrying capacity,” the minister said.

The second most important policy for solving vehicle congestion in Male’ city was developing multi-storey parking buildings, the minister said. This was a campaign pledge of President Dr. Mohamed Muizzu.

In addition, the minister said the government also has many other plans for the vehicle problem. The ministry has started seeing results after implementing some of the plans, he said.

For instance, the number of vehicles registered daily has been drastically reduced, he noted. A limit was imposed because the ministry has been verifying garage permits as mandated by the law, he added.

Ameen assured the committee that the government has been carrying out the verification process despite previous governments neglecting to do so.

Ahead of the planned vehicle buyback program, the government has started a voluntary program to demolish obsolete vehicles upon request by owners.

Comments

Read More

Latest News

Priority should be sale of assets to generate immediate liquidity

Former President Mohamed Nasheed urged the Maldives to prioritize selling assets for immediate liquidity rather than long-term projects like the $20 billion Rasmalé development. He argued the UAE-backed waterfront deal will not provide the urgent cash flow needed to resolve the nation's current financial crisis.

Police seek charges against six men for assaulting officers

Maldives Police are seeking charges against six men for assaulting officers during a drug search in Maafushi. Five suspects remain in custody, while one was released by the court. Authorities have also appealed the release of a seventh individual involved in the August incident.

No tax concessions for UAE developer in Rasmale' project

The Maldives government awarded the $20 billion Rasmalé project to UAE developer Eagle Hills without tax concessions or exemptions. All business activities will follow national tax laws, with payments processed through local banks. The state expects over $11 billion in revenue from sales fees and commercial revenue sharing.

No details on size and value of land given to Dubai company

The Maldives government signed a $20 billion deal with Dubai’s Eagle Hills to develop a massive integrated zone in Rasmalé. While the project promises 54,000 jobs and housing, officials have withheld specific details regarding the land size, valuation, and lease terms. The area is expected to operate as a special economic township.

Rasmale' investor to build 5,000 housing units in Hulhumale'

The Maldivian government has partnered with UAE-based Eagle Hills to build 5,000 housing units in Hulhumalé using a contractor financing model. This agreement follows a massive $20 billion deal for the firm to develop Rasmalé. The project will feature luxury residences and a world-class marina without impacting existing housing plans.

AMFA concludes first Junior Lifeguard Program

The Australia Maldives Friendship Association successfully completed its first Junior Lifeguard Program pilot in Thulusdhoo and Fuvahmulah. The initiative trained youth in water safety and rescue skills to enhance maritime security. AMFA plans to expand the program across the Maldives by 2027 through partnerships with local councils.

Project to build international bowling arena in Hulhumale'

A private company has been awarded a MVR 20 million project to build the Maldives' first international-standard bowling arena in Hulhumale'. The two-story facility aims to host global competitions, though the direct award process lacks an official statement. This project is part of a broader plan to develop world-class sports infrastructure.

Newsletter

Get the latest news delivered straight to your inbox