The government has decided to take a loan of USD 600 million through three government companies to finance the reclamation of the Fushidhiggaru lagoon for President Dr. Mohamed Muizzu's flagship project Rasmale'.

This was revealed in a letter sent by the President’s Office to the Finance Ministry to expedite the funding for the project.

According to the letter, the loans will be taken through three government companies to pay the contractors by the Maldives Industrial Development Free Zone (Mid Free Zone).

The President's Office has asked the Finance Ministry to pay the contractor using the state's usable reserves or the currency swap facility provided by India before the loans are settled.

Three loans for Mid Free Zone

• USD 300 million loan through Greater Male' Financial District Limited
• USD 200 million loan through Maldives Airports Company Limited
• USD 100 million loan through State Trading Organisation

The total loan amount us USD 600 million or MVR 9.3 billion.

Construction Minister Abdulla Muththalib earlier said about USD 500 million to USD 700 million will be spent on reclaiming 1,100 hectares of land in Fushidhiggaru lagoon.

Adhadhu can confirm the authenticity of the letter sent by the President's Office to Finance Minister Moosa Zameer on July 1. Two officials confirmed its aunthenticity as well.

The President's Office did not respond to a request for comment.

India's Mohan Mutha Exports (MME) and China Railway Construction Corporation (CRCC) are currently reclaiming the land under the project. The loan proceeds will be given to these companies.

Muizzu earlier claimed that lagoon will be reclaimed in eight months without spending any money from the state budget. But less than 30 percent has been reclaimed in the project which began on December 18, 2023.

The government now says the reclamation will be completed before the end of this year. This is the third deadline given by the government to complete the reclamation works.