The Housing Development Corporation (HDC) has revealed that it awarded the construction and repair of roads in Hulhumale' to China's Rotime Engineering and Technology Co. Ltd. under a settlement agreement.
HDC issued the statement after Adhadhu reported that the project was awarded at an exorbitant price.
HDC said the settlement agreement was in exchange for the development of temporary workers' accommodation in Hulhumale'.
The decision not to develop the temporary workers' accommodation was taken due to changes in the master plan of Hulhumale'. HDC also said the Sports Ministry requested to build an international sports stadium in the area.
Under the settlement agreement, five roads in Hulhumale' Phase 1 and the road near Vinares flats in Hulhumale' Phase 2 will be modernised. The total road area is 19,001 square metres.
The agreement also includes repairing 8,012 square metres of damaged roads in the Hulhumale' Phase 1.
HDC said the project will cost MVR 91 million and that the payment will not affect the company's cash flow. Fifty percent of the amount will be paid within one year in installments, while the remaining 50 percent to be paid over six years starting in 2027.
Adhadhu understands that the actual cost is expected to be around MVR 30 million.
Similar projects at exorbitant prices were awarded to Chinese companies during the parliamentary elections in 2024.
The projects include installing 32 elevators in the Hiyaa tower at a cost of USD 18 million. Some of the projects awarded during the parliamentary polls have not yet started.
