MTCC commissioned to carry out harbour development projects for 22 islands

Ministry of Housing and Infrastructure has commissioned Maldives Transport and Contracting Company Plc (MTCC) to carry out harbour development projects for 22 different islands, without a bidding process.

Housing Minister Dr. Mohamed Muizzu and Chief Executive Officer of MTCC Ahmed Ad'ham Abdulla signed the agreements for the projects, at an event held in SHE Building this morning.

Housing Minister Muizzu stated that the government owns a large amount of shares in MTCC and that this entitles them to commission the company without a bidding process.

“MTCC is one of the largest such companies to whom the government grants these projects. Government also holds large amounts of shares in the company. MTCC is the company that we can hand it over to without a bidding process. MTCC carries out these projects at a large scale, they hold the government’s trust,” Housing Minister Muizzu said.

He said that finances for projects were already allocated in this year’s budget.

While the government had stated that the harbour projects for the 22 islands will be finance by a loan, neither Housing Minister nor MTCC have mentioned the costs for the harbours, or the details of the financing.

“When the budget was approved, we had allocated specific amounts for each island. Including next year's, they were all allocated,” Dr. Mohamed Muizzu said.

The loans for the projects are to be obtained by MTCC. However, government guarantees for the loans have to be approved by the parliament.

MTCC said that they have already spoken to lenders about obtaining the loans, although they failed to provide details. Housing Ministry said that they will provide details of the financing as soon as they secure the loans.

They also said that the agreement gives leeway for it to be amended according to the fluctuations of the market prices of the construction material.

In the agreements, MTCC is required to complete all 22 harbours within a 2 year period. The 22 harbours are destined for islands; Dhaalu Dhandidhoo, Thaa Buruni, Alif Dhaalu Dhangethi, Shaviyani Foakiadhoo, Kaafu Gaafaru, Gaafu Gulhi, Alif Alif Himandhoo, Baa Hithaadhoo, Laamu Hithadhoo, Noonu Holhudhoo, Raa Inguraidhoo, Shivayani Kanditheemu, Gaafu aLif Kolamaafushi, Haad Dhaalu Kumundhoo, Gaafu Dhaalu Madaveli, Raa Maduvvari, Thaa Madifushi, Faafu Magoodhoo, Faafu Nilandhoo, Shaviyani Maroshi and Baa Thulhaadhoo.

MTCC said that they have already secured materials and manpower for the project. The company is already carrying out the Thaa Thimarafushi airport development project, along with harbour construction in 16 other islands.

The company said that in order to undertake the 22 new projects, they shall expand their capacity as necessary and promised that they will not compromise on the quality of the construction.

They said that they will be able to complete the Environment Impact Assesment for each island within a 28 day period and that projects for the islands will be carried out by 5 teams who will follow a schedule and be active in different parts of the country at different stages of the projects.

While MTCC has been commissioned for these projects without a bidding process, government has put other harbour construction projects to a second round of bidding. Housing Ministry said that a total of 45 harbour development projects are being carried out countrywide.

Government constructed harbours in 14 islands last year.