CMC will receive 70 hectors in exchange for Rasmale’ reclamation

Urbanco's managing director Ibrahim Fazul Rasheed (R) looks on as President Dr. Mohamed Muizzu (C) inaugurates the Fushidhiggaru Falhu land reclamation project on December 18, 2023. (Photo/President's Office)

Sri Lanka’s Capital Marine and Civil Construction Company (CMC) will receive 70 hectors of land for long-term lease in exchange for conducting the reclamation of Rasmale’ in Fushidhiggaru Falhu, according to Urbanco.

In a press briefing on Thursday evening, Urbanco managing director Ibrahim Fazul Rasheed said the project was being run based on a progressive development model.

Fazul said the CMC will cover the cost of the project by redeveloping or selling the reclaimed land.

He said the project will therefore not have any impact on Urbanco’s cash flow, and will improve its financial position, and ability to secure loans.

“This project is launched based on progressive development finance model, with no government involvement, and with a corporate guarantee from us... For one thing, this is being carried out with the agreement that we cover the cost through the sale of land or the sale of land under an agreed developmental plan,” he said.

Fazul said that CMC has already been leased 10 hectors of land from Hulhumale’, and will receive 60 hectors from Rasmale’, for 49 years and 50 years, respectively.

“And we are getting 1,093 hectors in return,” he said.

Fazul said Urbanco has run projects based on the same model in the past.

The Rasmale’ reclamation project, which is part of President Dr. Mohamed Muizzu administration’s plan to provide a permanent solution to the housing crisis in the Maldivian capital, was launched earlier this week.