The government has cancelled all contracts granting land in exchange for land reclamation projects in the Maldives, President Dr Mohamed Muizzu said Saturday.
Under successive governments, land has been offered to companies in exchange for undertaking land reclamation projects as means to recoup the costs of reclamation.
Speaking during a press conference on Saturday, President Dr Muizzu said his Administration had also been forced to follow this policy after the then Parliament refused State funding for his landmark Rasmale’ Project.
However, he insisted that the practice does not align with the policy of his Administration, adding that the Rasmale’ land compensation contract has since been terminated.
"When we tried to start the Rasmale’ project, we did not have the support of the Parliament. They refused to facilitate the path we wanted to take. So we were forced to accept the agreement model available to us. So we have faced long delays. But now we have canceled that agreement,” he explained.
According to the President, all contracts involving land compensation models in land reclamation projects have now been terminated.
Practical works pertaining to the Rasmale' Project officially commenced on 18 December 2023. Although the government initially planned to complete the land reclamation of Rasmale' within ten months, it revealed that adjustments were being brought to the plan following unforeseen challenges which caused delays.
The Rasmale' Project will see the reclamation of a total 1,009 hectares of land which has been divided into a dozen sections.
The land reclamation of Rasmale’ is now progressing swiftly with 101 hectares of land reclaimed thus far, Housing Development Corporation (HDC) has announced.