HDC to obtain $30 million loan for Hulhumale

The Housing Development Corporation (HDC) has decided to obtain a loan of $30 million from the Bank of Ceylon for the second phase of the dredging and reclamation works in Hulhumale’ .

This was announced by Managing Director of HDC Suhail Ahmed at a ceremony at Nasandhura Palace Hotel today, held to sign the framework agreement for this project with Belgian company Dredging International.

The agreement was signed by Suhail on behalf of HDC, and Amedeo Peyron, the Resident Manager for Indian Subcontinent on behalf of Dredging International.

Speaking at the ceremony, Suhail said that the total cost of this project is $50 million, of which $30 million will be financed through a loan facility from the Bank of Ceylon, and the remaining $20 million will be financed through HDC’s reserve.

He added that the loan facility agreement with Bank of Ceylon will be signed at the end of the month.

The project, which includes the reclamation of 240 hectares of land with a target population of 100,000, will be implemented next month and should be completed by December 2015.

A total of 188 hectares of land was reclaimed under the first phase of this project, which was launched in 1997.