Minister: Rasmale’ reclamation cannot be completed in eight months as planned

Infrastructure Minister Dr. Abdulla Muthalib, on Thursday, said the reclamation of K. Fushidhiggau under ‘Rasmale’ project cannot be completed within eight months of commencing physical works as previously stated by President Dr. Mohamed Muizzu.

Physical works on the current administration’s biggest housing project – Rasmale’ land reclamation – was launched on December 18^th. A total of 1,153 hectares of land is to be reclaimed under the project, which the government targeted to complete in eight months.

At a press conference held by the Infrastructure Ministry on Thursday, Minister Muthalib responded to a question posed by the journalist regarding the project, during which he affirmed that the project cannot be completed within eight months. Henceforth, he said the government was looking into possible alternatives.

Instead of funding the project, the government decided to offer long-term lease for the Sri Lankan contractor undertaking the reclamation; Capital Marine and Civil Construction Company (CMC). In this regard, CMC will receive 70 hectares of land for long-term lease in exchange for the reclamation project; 10 hectares from Hulhumale’ for 49 years and 60 hectares from Rasmale’ for 50 years. As per the Minister, this is the most beneficial route as the government would not need to acquire loans to further increase its debt burdens.

“If the government is proceeding by leasing 10 hectares from Hulhumale’ and 60 hectares from Rasmale’, it is a huge profit to the government in consideration of the price of land in Hulhumale’ at present and the prospective price under which land can be sold from a place such as Rasmalae’, as we a getting approximately 1,000 hectares of land just by leasing 70 hectares of land,” he said.

Commenting on the delays in the project, Minister Muthalib attributed the delays to obstruction in financing the project as proposed by the contractor. Therewith, he noted that the government was looking for alternatives as works remained stalled.

The Minister said the government will prioritize the cheapest possible option while ensuring the project can be completed at the earliest while seeking alternatives.