HDC: Loan agreement for Hulhumale

The Housing Development Corporation (HDC) has said that the agreement for the $30 million loan from Bank of Ceylon (BOC) for the second phase of the Hulhumale’ land reclamation project, will be signed next week.

HDC earlier said that this agreement would be signed in July.

Chairman of HDC Hassan Ziyath said that he was confident that the agreement can be signed next week, as the loan has already been approved by BOC’s Credit Committee.

He said that as per the existing plan, the equipment required for the reclamation work will arrive in the Maldives at the end of the month.

Ziyath added that the reclamation work will be completed and the construction of roads will begin in this area by February 2015.

Managing Director of HDC Suhail Ahmed said during a ceremony held to sign a framework agreement with Belgian company Dredging International regarding the second phase of the Hulhumale’ land reclamation project, that the cost of this project is $50 million.

Suhail said that the remaining $20 million, in addition to the $30 million loan from BOC, will be obtained from HDC’s reserve.

Under the second phase, a total of 240 hectares will be reclaimed in Hulhumale’ on Farukolhufushi side. This will facilitate housing for an additional 100,000 people on the island.

The 188 hectares reclaimed under phase one of the project, launched in 1997, was aimed at facilitating housing for 60,000 people.