Addu Mayor concerned over decision to let go of land issued for garment factory

Addu City Mayor Ali Nizar has expressed concern, citing Business Centre Corporation (BCC) has decided to let go of the land plot issued to the Corporation from Addu City to develop a garment factory.

Addu City Council issued a land plot to BCC for the development of a garment factory back in July of this year.

Speaking with Sun, Mayor Nizar said the Council has received a letter from BCC notifying the Council of the Corporation’s decision to transfer the land plot to the Construction Ministry. According to him, the decision was reached following a recent amendment to the Construction Ministry’s regulations.

He added that this decision was made despite the project design already being awarded and funds having been allocated.

Henceforth, he expressed concern over BBC’s decision to let go of the land plot so easily.

Mayor Nizar further said BCC informed they will seek a new plot of land for the project following its decision to let go of the land plot initially allocated for the purpose. Despite this, he said there has been no efforts from BCC’s side to secure another land plot or hold any discussions in this trajectory.

“In other words, [works on the garment factory] is now stalled,” he stressed.

A garment factory has previously been operated in Addu City. The factory, run by Sri Lankan companies, was significantly beneficial to Addu City as it had created many jobs.

However, the factory came to a halt. Although efforts to resume operations at the factory briefly succeeded on two occasions, the operations of the factory came to a complete halt in 2005.

BCC announced its decision to develop a garment factory in Addu City in 2020, with assistance from the World Bank.

The garment factory is to be developed in Hithadhoo Port Area.