The project, which was awarded to Shenyang Yuanda Intellectual Industry Group of China, to install additional elevators in all the Hiya towers, will cost MVR 367 million from the state budget, according to the proposed state budget for 2026.
The installation of elevators in the 16 towers was started during the first few days of this administration. It was awarded under the first 100-day pledges of the government.
MVR 200 million was allocated in the state budget for the project last year. But the government estimated only MVR 108 million would be spent on the project. The budget approved for this year said no amount will be spent from the state budget.
It is likely that the Housing Development Corporation (HDC) is spending on the project and the first MVR 108 million was issued to HDC as an advance payment for the project.
But HDC refused to disclose the value of the project. Adhadhu tried to find this information following reports that the project was awarded at an exorbitant rate.
Adhadhu earlier reported, citing officials from companies that do elevator installation work, that the Chinese company was contracted at an unusually high rate.
HDC former Managing Director Fazul Rasheed later confirmed that the project value was USD 18 million (MVR 278 million).
But the budget book has revealed that MVR 173 million was spent on the project last year, while an additional MVR 194 million will be spent this year.
This is MVR 167 million more than the initial budget and MVR 91 million more than the confirmed contract price. But only a few elevators have been installed so far.
The HDC has given a deadline of the end of this month for the installation of elevators in all the towers. Despite the HDC's claims, the structure of some towers has not yet been completed. The work is not expected to be completed by the deadline.
Shenyang Yuanda Intellectual Industry Group of China was contracted on February 12, 2024, to install 32 additional elevators in the 16 Hiya residential towers. The initial agreed-upon date for completion of the work was January 30, 2025.
However, the deadline was extended till April 15. The HDC took reporters to the area on May 9 and said the elevators would be installed by the end of November.
