BML Affordable to work on over 2,000 housing units in January

BML Affordable Home Leasing Company has awarded projects regarding the construction of new affordable flats to a company yesterday, with practical work to begin in January.

The BML Affordable Home Leasing Company is a subsidiary of BML that was put together by the Maldives Monetary Authority (MMA) in order to achieve a specific intent of theirs.

As per MMA's regulation, it has become a requirement for 10 to 15 percent of the total loan portfolio of loans given out by the commercial banks to be allocated for affordable housing.

As per BML, the construction of the housing units by the bank's subsidiary company was awarded to two internationally recognized Chinese companies Beijing Urban Construction Group (BUCG) and China Machinery Engineering Corporation (CMEC).

The projects will be run under the INAH Framework, with housing units of good quality to be built and finished within the allotted time, as stated by BML.

BUCG was awarded the project to build 1,117 housing units on a 13,475 square feet plot of land split into four plots at Hulhumale' Phase 2.

BUGC is an internationally acclaimed company that has done many projects in Maldives in the past. It includes the development of Velana International Airport's runway and other major projects.

BML stated that CMEC was awarded the project to construct 1,224 affordable housing units in Hulhumale'. CMEC is also an acclaimed company, and was also awarded the Vinares Housing Project in Hulhumale'. CMEC is currently working on Gulhi Falhu and Hulhumale' Phase 2's infrastructure. 

"These contractors were chosen under MMA's Inclusive National Affordable Housing Scheme, with an evaluation stage that was undertaken as per Governance and Risk Standards," stated BML.

"The two companies that we entered into an agreement with are financially capable companies that have experience managing international projects and are well-versed in Maldives' construction sector."

BML said that the affordable flat construction project is under the government's Housing For All and family housing policy and on the government's initiative.

The Cabinet has decided in the past to offer more opportunities for affordable housing in Maldives by starting the "National Housing Affordability and Accessibility Project".

BML has also said that BML Affordable Home Leasing Company is being run after being permitted by MMA and also in line with Sharia rules.

As per CEO and Managing Director of BML Mohamed Shareef, the point of the company is to build the flats and rent them out under a "Lease Ending with Ownership" model. He also said that after rent payments are done, renters will be able to own the flats.

Minister of Construction, Housing and Infrastructure Dr. Abdulla Muththalib stated before that the land to build and sell the affordable housing units were leased to BML for free under MMA's "Inclusive National Affordable Housing Scheme".

He stated that the flats to be constructed by BML will be given to those chosen who apply for a program announced by the government and that they are to be eligible as per the conditions that will be determined.

"The bank decided to collaborate with the government in order to solve the housing crisis and is a level of cooperation that has not been given to the government by former managements," said the minister on 13th November during the ceremony in awarding the plots for the affordable sale and building of flats.

BML went on to say that the bank and the Housing Subsidiary company are cooperating for works prioritizing national housing. They also said that they are working on strengthening opportunities in acquiring affordable housing as per MMA's vision of establishing a stable financial system.

Under this project from BML, 300 flats in Villimale' will be constructed, with 2,700 flats to be constructed in Hulhumale' Phase 1 and Hulhumale' Phase 3, totaling 3,000 flats.

BML spokesperson Mohamed Saeed stated that along with the housing unit work awarded by BML Affordable Home Leasing Company, they have decided to award additional housing work to Maldivian construction companies.

"With this, the practical work for constructing more than 3,000 housing units will begin in January," said Saeed.