Minister of Construction and Infrastructure Dr. Abdulla Muhthalib has stated that the contractors are expected to spend USD700 million for the reclamation of Rasmale', without any cost to the government.
Speaking to journalists after a contract signing ceremony, Minister Muhthalib said the government has not hidden any details of the Rasmale' project and that the government will not spend any funds on the project. He detailed that the reclamation project is expensive but that the contractors have accepted the financial risk and will be spending USD700 million on the project. As such, he said that the government is not required to make any financial transactions for the project.
The reclamation project was awarded to three companies. They are Sri Lanka-based Capital Marine and Civil Construction Company (CMCC), Royal Boskalis Westminster of the Netherlands and China State Construction Engineering Corporation Limited (CSCEC).
The three companies will be given 70 hectares of land in exchange for reclaiming the 1,153 hectares in Fushidhiggaru Falhu for the development of Rasmale'. As such, 10 hectares of land will be allocated from Hulhumale' while 60 hectares will be allocated from Fushidhiggaru Falhu. The land plots will be leased to the companies for a 50-year period and will be allocated under the master plans for the designated areas.
The cost of reclamation will be paid by selling the land plots under a progressive development plan. The companies have full responsibility for completing the project under a corporate guarantee while the government is not involved. The government has decided to allocate over 11,000 land plots and 26,000 housing units in Rasmale' after the completion of the reclamation project.