President establishes Road Development Corporation to replace MRDC

File photo of Maldivian President Ibrahim Mohamed Solih presiding over a Cabinet meeting at the President's Office. (File Photo/President's Office)

President Ibrahim Mohamed Solih has established a new 100 percent State owned corporation to carry out road development projects in Maldivian islands.

The new corporation, Road Development Corporation Limited was established under presidential decree this Sunday.

RDC will replace Maldives Road Development Corporation (MRDC) which was dissolved during former president Abdulla Yameen Abdul Gayoom’s administration amid allegations of corruption and overwhelming debt.

The staff at MRDC were transferred to Public Works Department of Ministry of Housing – which is now run under Ministry of National Planning and Infrastructure.

The presidential decree to establish RDC reads that the corporation was established because the President considers the existence of a system where roads in residential islands are developed and maintained a basic public service.

The decree further reads the President considers establishment of a corporation with the capacity to develop and maintain of bridges to facilitate short-distance and long-distance transport between residential Maldivian islands imperative for economic and infrastructure development.

The starting capital of RDC is listed as MVR 50 million.