Rasmale’:101 hectares from 1,009 hectares reclaimed in seven months

101 hectares of the planned 1,009 hectares have been reclaimed under the Rasmale’ Project – the incumbent People’s National Congress (PNC) administration’s biggest housing project – seven months since physical works on the project resumed.

Housing Development Corporation (HDC), on Sunday, said 101 hectares have been reclaimed under the project, which includes 29 hectares of Site-J contracted to Capital Marine and Civil Construction and 72 hectares from the 378 hectares of Sites D,F,G and L contracted Mohan Mutha Exports Private Limited.

The 101 hectares that have been reclaimed in equal to half of Hulhumale’ Phase I.

Efforts are underway to commence shore protection works at the site as well.

The Rasmalé reclamation project accounts for sea level rise due to climate change. The land reclaimed under the project will be 2.5 meters above sea level—0.5 meters higher than Hulhumalé. The area is expected to accommodate over 240,000 people.

The government plans to issue 11,000 land plots and over 26,000 housing units from Rasmale’, which is being developed as an eco-city.

Physical works on reclaiming 1,153 hectares of land from K. Fushidhiggaru Falhu under the Rasmale’ project was launched on December 18th, 2023.  The administration had initially aimed to complete reclamation works in eight months. However, the reclamation works remained stalled for months before it resumed on November 10^th of last year.

The reclamation works were originally contracted to Sri Lanka’s Capital Marine and Civil Construction Company (CMC). According to the terms of the contract, CMC would bear the cost of the project in exchange for 70 hectares of land for long-term lease, including 10 hectares from Hulhumale’ for 49 years and 60 hectares from Rasmale’ for 50 years.

But the administration later cancelled the contract, citing it wants to pursue an option where the contractor would not need to be awarded land in exchange. In this regard, the government decided to proceed under a contractor financing basis.

The administration has allocated MVR 600 million for the project in the 2025 budget, and plans on allocating another MVR 350 million for the project in 2026.