The Housing Development Corporation (HDC) has taken out a huge loan to hand over the land reclamation of Rasmale' to an Indian company and a Chinese company after the initial plan for the Rasmale reclamation project failed.
The project began on December 18 last year and was awarded to Capital Marine and Civil Construction (CMCC).
The agreement to award 70 hectares of land from Rasmale' and Hulhumale' to CMCC has been cancelled after the work did not proceed as planned. The company was tasked with reclaiming 1153 hectares of land from Fushidhiggaru lagoon in eight months. But the company was able to reclaim only 29 hectares which is about 2.5 percent of the total land area.
The Environmental Protection Agency (EPA) has announced that seven more sites will be reclaimed after the completion of the Environmental Impact Assessment (EIA). The total area of the sites is 256 hectares. The EIA states that this land area included in Stage One will be reclaimed within one and a half years of starting the reclamation.
Sites D, G and L were awarded to Mohan Mutha Exports (MME) of India. The remaining four sites, A, B, H, I and K, were awarded to China Railway Construction Corporation (CRCC).
Mohan Mutha Exports (MME)
Mohan Mutha is one of India's most famous export companies. The company is known in Maldives for its extensive export of stone, gravel and other construction materials.
The company has previously carried out land reclamation projects in Maldives. The roads in Hulhumale' Phase 2 were constructed by a joint venture involving MME. Mohan Mutha has also been awarded various development projects in some islands under Indian assistance.
Mohan Mutha is also preparing to build a resort in Maldives., the Hindu Businessline reported, citing its Executive Director Suresh Mutha.
Sites D, G and L, which were handed over to the company to be reclaimed in Rasmale', are expected to be completed in 14 months.
China Railway Construction Corporation (CRCC)
China Railway Construction Corporation (CRCC) is a state-owned company. The company carries out various construction projects and the main priority is to establish and operate railways in various countries.
The CRCC is not known to have carried out any projects in Maldives in the past. It is also unclear whether the company has conducted any land reclamation projects. Sites A, B, H, I and K handed over to the company in Rasmale' are expected to be completed in 17 months.
Project will proceed when HDC takes out huge loan
The Fushidhiggaru land reclamation started with CMCC to be awarded 10 hectares from Hulhumale' and 60 hectares from the land to be reclaimed from the lagoon.
President Dr. Mohamed Muizzu made that decision after challenging the Parliament's omission of MVR 400 million allocated for the project in this year’s budget. He claimed that the reclamation work would be completed without depending on the state budget.
However, HDC has released MVR 77 million to complete the reclamation of the first 27 hectares of land in Site J. The project was earlier planned to be financed by CMCC under the contractor financing model.
According to the latest EIA, the project will now be financed through a loan taken by HDC. Neither the government nor the HDC has disclosed any details about the loan.
The loan amount is not confirmed, but the reclamation of about 1,100 hectares in the area will cost "at least between USD 500 million and USD 700 million," Construction Minister Dr. Abdulla Muthalib had previously said.
So it is believed the loan for the project will be a minimum of USD 500 million.
