The Supreme Court has cancelled a High Court order to halt the land reclamation project of Gulhifalhu initiated by the former government to provide land plots and build flats for housing and establish an international commercial port.
The top court earlier issued a stay order on the High Court decision and the project resumed. Last month, the Construction Ministry said the Gulhifalhu land reclamation project had been completed.
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.
The three-judge bench of the Supreme Court unanimously declared that the only matter for the Supreme Court to consider in the case is whether the interim order was issued by the High Court in accordance with the rules.
The top court does not have to consider the various points involved in the case, the ruling stated. It also noted that the High Court had not taken into consideration the financial losses incurred by the state when the project was halted.
According to the agreement between the state and the company, 15,300 euros per hour will be incurred as idle charges. If the project is suspended for a month, it will cost the state 11 million euros.
The Gulhifalhu reclamation project was awarded to Boskalis from the Netherlands for USD 53 million without a bid and financed with loans from European banks and funds from the government budget.
In the first phase of the project, 42 hectares were reclaimed and an additional 150 hectares were allocated in the second phase.
Housing projects were planned in Gulhifalhu during the government of former President Mohamed Nasheed in 2008. However, former President Abdulla Yameen, who was in office from 2013 to 2018, decided to discontinue the projects.
The government of President Ibrahim Mohamed Solih from 2018 to 2023 decided to add more land to Gulhifalhu by reclaiming parts of the lagoon and constructing a bridge to link with the capital Male'.
