Projects under MVR 5m to be run by councils

Finance Ministry has stated that PSIP projects run in different islands valued below MVR 5 Million would be run by the local council of that island.

Minister Ameer issued a circular regarding the finances of the PSIP projects run by national institutions through the councils.

The circular issued under the recently amended article 69 of the Decentralization Act, granting wide powers to councils, state that projects valued under MVR 5 Million should be run through the local or atoll council.

Projects including more than one island of the atoll should be run by the atoll council. The circular also stated that projects under MVR 15 million in cities to be run by the city council. Government institutions could still award projects valued higher than the amount in the circular to councils under a set policy.

These projects do not include projects run by national security services. The circular stated that projects in the pre-tender process can also be awarded to councils as well as new projects from the date the circular was issued.

How to carry out the project, procurement plans, agreement formation as well as financial arrangements were also included in the circular.