Sanitation projects previously run for MVR 70M now run for MVR 30M

Finance Minister Ibrahim Ameer says the previous administration had contracted infrastructure development projects for extremely high costs, but that the current had cut down the cost of such projects by approximately 57 percent.

Briefing the Parliament on the supplementary budget on Monday, Ameer said the current administration contracted projects after an open tendering process, and that the policy has helped cut down the cost of projects considerably.

He said that a sanitation projects at residential islands, which was contracted during former President Abdulla Yameen Abdul Gayoom’s administration for MVR 70 million, is now contracted for MVR 30 million.

“The open and transparent tendering process by the new administration has helped us reduce the cost of work which was previously costly. Water and sanitation projects were previously run for MVR 70 million. We now run them for MVR 30 million,” said Ameer.

He also provided assurances that all PSIP (Public Sector Investment Program) projects included in the annual budget for 2019 will be tendered, contracted, and initiated by the end of the year. He noted that it will increase the budgeted expenditure.

“I assure the Speaker and honorable members of this Parliament that all PSIP projects on the budget will be launched by December of this year,” said Ameer.

He said the current administration was increasing its project expenditures in such a way it does not affect the national debt. He said the administration will be spending MVR 2.2 billion on settling debt in 2019, and said that only MVR 600 million was spent towards debt settlement in the past.

Ameer also said that 200 students selected for student loan scheme had yet to receive their funds when the current administration assumed power. He provided assurance the current administration will release funds to the 200 students, and announced that the administration was working on tightening its policies regarding recovery of unpaid loans.

Ameer also highlighted on President Ibrahim Mohamed Solih’s electoral pledge to revise the civil servant salary structure. He said that the Pay Commission was currently working on engaged in research necessary to bring about the revisions.

He said a decision regarding salary structure revisions will be made once the Pay Commission finishes its work.