Minister of Construction and Infrastructure Dr. Abdulla Muththalib has emphasised due to budget constraints, the focus is on completing ongoing projects rather than initiating new ones. He made the statement in response to questions from parliamentarians regarding infrastructure development projects across various islands.
Speaking at the parliamentary session, Minister Muththalib said that the current state budget does not allocate sufficient funds for new projects this year. As a result, he said that the government must prioritise existing projects, with new initiatives only being launched once ongoing ones are completed.
Additionally, Minister Muththalib highlighted that the government has committed to projects under the Public Sector Investment Programme (PSIP) valued at USD 2.4 billion. Of this, he said that ongoing projects account for USD 2 billion, while the budget for the current year stands at just USD 324 million. He urged parliamentarians to ensure adequate funding is included in the budget to avoid reallocating resources from one area to another.
Furthermore, Minister Muththalib said that some projects, particularly 20 water and sewerage initiatives worth USD 65 million, awarded to Fenaka Corporation Limited, have been stalled. He said that the government is in the process of canceling these contracts and transferring them to Male' Water and Sewerage Company Private Limited (MWSC). He also reiterated if companies cannot deliver on their contracts, the agreements will be terminated to ensure that services reach the public.
Moreover, Minister Muththalib noted that the previous administration had assigned over 150 projects to the Maldives Transport and Contracting Company (MTCC), which lacks the capacity to execute all of them simultaneously. He, therefore, said the company has been instructed to prioritise the projects it has already commenced.