The Kuwait Fund cancelled plans to finance the development of 30-bed hospitals on seven islands over violations of its procurement policy in the process of awarding the projects, Health Minister Dr. Abdulla Khaleel said on Monday last week after he was summoned for questioning in Parliament.
In response to questions from Velidhoo MP Mohamed Shafeeq Abdulla and Milandhoo MP Ali Riza, Khaleel said the hospital projects planned on their islands with Kuwaiti grant aid stalled because the Kuwait Fund has stopped financing for various reasons.
After Khaleel's response, Thaa Vilufushi MP Hassan Afeef asked the minister to explain the reason for the Kuwait Fund's withdrawal of funds.
In response, Khaleel said international funding agencies have certain rules for procurement practices. The Kuwait Fund withdrew financing because the process for awarding the projects had been carried out in violation of its procurement rules, he said.
"According to my information, the Kuwait Fund has stopped it completely because the Maldives at the time wanted to carry out the awarding process in a certain way. Therefore, [the funding was withdrawn] because it was carried out in violation of the Kuwait Fund's procurement policy, we have been informed," Khaleel said last week.
Kuwait Fund issued "no objection" document to Maldives
However, Adhadhu has obtained "no objection" documents issued to the Maldives from the Kuwait Fund after the Health Ministry completed the bid awarding process and shared details with the agency. The "no objection" letters were issued after the Kuwait Fund assessed the bid awarding process.
In a letter with the reference number KF/9G11-48 sent to the Maldives on April 16, 2023, the Kuwait Fund responded to documents sent over on April 11, 2016 with recommendations from the National Tender Board after evaluations of the companies that submitted bids to develop the seven hospitals.
With its reply, the Kuwait Fund issued "no objection" documents to going ahead with the recommendations of the Maldives tender board. This was done after reviewing a tender evaluation report compiled by the Maldives on March 12, 2023.
The document included:
- Awarding the development of a 30-bed hospital in Alif Dhaal Maamigili to Duplex Pvt Ltd - MVR 101,327,176.03
- Awarding the development of a 30-bed hospital in Noonu Velidhoo to Buildtech Pvt Ltd - MVR 95,627,718.16
- Awarding the development of a 30-bed hospital in Thaa Vilufushi to Duplex Pvt Ltd - MVR 109,377,431.15
- Awarding the development of a 30-bed hospital in Haa Dhaal Hanimaadhoo to Duplex Pvt Ltd - MVR 90,512,216.05
- Awarding the development of a 30-bed hospital in Shaviyani Milandhoo to Anand Buildtech Pvt Ltd - MVR 95,627,718.15
- Awarding the development of a 30-bed hospital in Kaafu Thulusdhoo to Anand Buildtech Pvt Ltd - MVR 91,767,709.06
- Awarding the development of a 30-bed hospital in Vaavu Felidhoo to Duplex Pvt Ltd - MVR 102,049,555.63
Kuwait Fund did not withdraw funds
In addition to Minister Khaleel, President Dr. Mohamed Muizzu also said in Haa Dhaal Hanimaadhoo on February 26 that the Kuwait Fund has withdrawn the funds.
However, the President gave the previous government's delays on the hospital projects as the reason for Kuwait Fund's decision.
A senior Finance Ministry official confirmed to Adhadhu that the Kuwait Fund has not withdrawn funding for developing 30-bed hospitals on seven islands.
After responding to questions from MPs and claiming that the Kuwait Fund has withdrawn the project funding, Khaleel told MPs on Monday last week that he would seek further information and update Parliament at a later date.
According to the Finance Ministry official, there were delays in the disbursement of funding from Kuwait to the Maldives due to political upheaval and frequent changes of government in the country.
The Kuwaiti government changed eight times in the past four years due to political instability in the country.
