MTCC told to stick to ongoing projects, not take on new work

Maldives Transport and Contracting Company (MTCC) has been instructed by the government not to start work on projects awarded to the company that they have yet to begin practical works on.

In a post on X on Tuesday night, Infrastructure Minister Dr. Abdulla Muthalib said the government has not decided to suspend any of MTCC’s projects with practical works in progress.

“However, the government has decided not to begin projects where practical works haven’t been initiated, and to prioritize completing projects where practical works are in progress,” he said.

He said that the main reason for the decision is that the 2024 budget does not include enough money to carry out the projects.

އެމް.ޓީ.ސީ.ސީ އާ ޙަވާލުކޮށްފައިވާ މަޝްރޫޢުތަކުގެ ތެރެއިން ޢަމަލީ މަސައްކަތް ފެށިފައިވާ އެއްވެސް މަޝްރޫޢެއް މަޑުޖައްސާލަން ސަރުކާރުން ނިންމާފައި ނުވާނެއެވެ. އެހެން ނަމަވެސް ސޮއިކޮށް ޢަމަލީ މަސައްކަތް ނުފެށިވާ މަޝްރޫޢުތައް މިވަގުތައް ނުފަށައި ޢަމަލީ މަސައްކަތް ފެށިފައިވާ…

— Abdulla Muththalib (@muththo) July 30, 2024

Muthalib’s post had come after a news outlet reported that MTCC had been instructed to suspend its projects, including ones where practical works are in progress.

Statistics released by the Finance Ministry in October 2023 shows that MTCC conducts 60 percent of the infrastructure development projects in the country.

A combination of debt stock accumulation over the last decade, as well as continuously high fiscal and current account deficits over the same period, has exposed the Maldives to economic vulnerabilities.

The government has announced a string of austerity measures to combat the debt crisis.

Ensuring the continuity of projects had been one of President Dr. Mohamed Muizzu’s electoral pledges.