Ministry of Finance has published the policy on conducting developmental projects by island councils, atoll councils and city councils.
The policy publicised by the ministry states all projects valued below USD 323,500 shall be conducted by local councils, while all projects run in cities worth USD 970,500 or below shall be run by the city councils. It further states all projects above the values run in respected islands and cities can still be run by the councils should the government institutions set a policy on awarding them. Defence projects cannot be run by the councils and have to be run by the government institutions planning and conducting such projects, according to the circular from the finance ministry.
The amendments to the Decentralisation Act have granted significant powers to local councils. The amendments also grant the authority for local councils to decide the types of projects to run in islands and budgets to run projects.