Indian firm is seeking $70 million in damages after contract cancellation: MDP

Aug 12, 2026, 9:28 AM
MDP government awards contract to Indian company for the construction of three hospitals

MDP government awards contract to Indian company for the construction of three hospitals

The main opposition Maldivian Democratic Party (MDP) has said that an Indian company has filed a claim for over USD 70 million in damages following the current administration's decision to terminate several project agreements.

In a press statement, the MDP noted that the government cancelled contracts for the Thulusdhoo Hospital project in Kaafu Atoll, the Velidhoo Hospital project in Noonu Atoll, and the Milandhoo Hospital project in Shaviyani Atoll on March 11, 2025.

According to information obtained by Adhadhu, the construction of these hospitals was awarded to India’s Anand Buildtech Private Limited. The Thulusdhoo Hospital project was valued at MVR 91.7 million, while the contracts for the Velidhoo and Milandhoo hospitals were awarded for MVR 95.6 million each.

MDP accuses government of halting 16 health projects

The MDP has accused the government of halting 16 health projects and re-awarding them to state enterprises at higher costs. The opposition claims the administration terminated valid contracts and diverted millions in international funding to different islands, causing significant public loss and legal claims from previous contractors.

Responding to Health Minister Geela Ali’s recent claims that 16 projects initiated by the previous MDP administration had stalled, the party countered that it was the current government that halted these projects while they were actively underway.

The MDP further alleged that the administration terminated these contracts to the detriment of the public, only to re-award the projects to various State-Owned Enterprises (SOEs) at significantly higher prices.

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