The Finance Ministry said today that the state budget will not incur any costs for the housing units to be developed in Hulhumale’ by UAE’s Eagle Hills Developers under the Rasmalé Waterfront Project, neither during the construction phase nor upon completion.
The development of these housing units is a requirement for the Abu Dhabi-based company as an "initial commitment" before commencing the Rasmalé mega-project. The government maintains that these units are being developed under a "contractor financing" model at Eagle Hills' own expense, without any financial commitment from the state.
Providing further details to PSM, Finance Minister Hassan Zareer said that the agreement involves the development of 5,000 housing units in Hulhumale’ for USD 500 million (MVR 7.7 billion). He further noted that the government has not issued any guarantees to finance the construction project.
"The developer will secure the financing and carry out all works for this project. We do not have to provide any loans, financing, or any form of commitment for this project," the Minister said.
Following the Minister's remarks, Adhadhu inquired with the Finance Ministry regarding whether any payments would be required once the buildings are completed.
This inquiry followed reports citing Housing Minister Abdulla Muththalib, suggesting that payments would be necessary during the sale phase of the units.
A report by the local newspaper Mihaaru quoted Muththalib, stating, "Payments will be made during the sale phase once the housing units are completed and handed over."
When questioned on this point, a Finance Ministry official reiterated that the state budget would not be utilized to pay for the housing units developed by Eagle Hills.
While confirming that the government would not be liable for payments, the official could not clarify whether the public recipients of the housing would have to pay, or whether such payments would be made to the company or the government. The official stated that such details would be managed by the Housing Ministry.
The government has announced that the housing project will be launched before the end of this year, with physical work expected to begin next year. However, as project details remain undisclosed, it is currently unclear how many rooms each unit will contain or whether the development consists solely of social housing or "affordable housing" targeted at middle-income earners eligible for bank financing.
