Only 129 hectares of land have been reclaimed 600 days after the government launched its flagship housing project to build Rasmale' city.
The Rasmale' project began on December 18, 2023, with a target to complete the reclamation of Fushidhiggaru lagoon in eight months.
President Mohamed Muizzu announced that 1,153 hectares of land would be reclaimed in the lagoon for the artificial city.
But the Housing Development Corporation (HDC) said through the state broadcaster today that only 129 hectares or 11 percent had been reclaimed so far.
More than 600 days or 20 months have passed since the project began and the dredger had recently stopped work due to pending payments.
The government initially awarded the reclamation work to Capital Marine and Civil Construction (CMCC).
The agreement with CMCC was made with the promise of long-term acquisition of land in exchange for the reclamation.
In eight months, the company reclaimed only 29 hectares. The work stalled and the government decided to cancel the contract.
Satellite image shows Fushidhiggaru lagoon on August 8. -- Photo: Sentinel
HDC has now taken a loan and awarded the work to India's Mohan Mutha Exports (MME) and China's China Railway Construction Corporation (CRCC).
The Luxembourg-flagged dredger Francis Beaufort was previously used in the project. About 100 hectares were reclaimed in nine months using the dredger.
Muizzu earlier claimed that the lagoon will be reclaimed in eight months without spending any money from the state budget.
But he has now ordered relevant government agencies to use the state reserves to make advance payments to ensure the project proceeds.
It has also been revealed that the government plans to borrow USD 600 million through three government companies to finance the project.
The President's Office sent a letter to the Finance Ministry requesting arrangements to expedite raising of funds for the project.
According to the letter, the loans will be taken through three government companies to pay the contractors by the Maldives Industrial Development Free Zone (Mid Free Zone).
The President's Office has asked the Finance Ministry to pay the contractor using the state's usable reserves or the currency swap facility provided by India before the loans are settled.
Three loans for Mid Free Zone
- USD 300 million loan through Greater Male' Financial District Limited
- USD 200 million loan through Maldives Airports Company Limited
- USD 100 million loan through State Trading Organisation
The total loan amount is USD 600 million or MVR 9.3 billion.
Construction Minister Abdulla Muththalib earlier said that about USD 500 million to USD 700 million will be spent on reclaiming 1,100 hectares of land in Fushidhiggaru lagoon.
