Bank of Ceylon approves loan for Hulhumale

The Board of the Bank of Ceylon (BOC) has approved a loan of $30 million, requested by the Housing Development Corporation (HDC) for the second phase of the Hulhumale’ land reclamation project.

Sun Online has been informed that the loan, with a repayment period of 7 years and interest of 8 percent, was approved last Friday.

Chairman of HDC Hassan Ziyath told Sun Online that preparations are underway to sign the loan agreement with BOC this week.

Ziyath 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.

According to HDC, the $50 million project will be financed by the $30 million loan from BOC and $20 million 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.