Giraavaru Falhu Reclamation Halts Over Unsettled Bill: Muththalib

The state's most expensive acquisition to date, the Giraavaru lagoon project, has faced delays due to outstanding dues related to the demolition bill in September/October of the previous year, as disclosed by Construction and Infrastructure Minister Dr. Abdulla Muththalib.

During an appearance on the state media PSM's "Raajje Miadhu" program, Muththalib revealed that while 50 hectares of the targeted 160 hectares of land reclamation from Giraavaru Falhu have been secured, the project has been at a standstill.

Muththalib explained that the Giraavaru Falhu reclamation operates under an agreement, with the state covering a specific amount through a cross-subsidy and the remainder via contract financing, making it a substantial and costly commitment for the state.

The Giraavaru Falhu reclamation comes with a price tag of $197 million (MVR 3 billion).

"The project has come to a halt primarily due to the state's delayed payment to the contractor, involving unsettled bills from September/October of the previous year," Muthalib explained, without specifying the exact amount pending.

He emphasized the government's commitment to swiftly disburse the funds to revitalize the significant project. Muthalib highlighted the government's top priority of completing the land reclamation in Giraavaru and establishing corresponding services.

Several companies have shown interest in contributing to the project by constructing roads and providing essential amenities in Giraavaru Falhu, with agreements expected soon.

Last month, President Dr. Mohamed Muizzu decided this administration would be expanding the Giraavaru Falhu project by adding 50 hectares of land to the existing area obtained during former President Ibrahim Mohamed Solih's administration.

The government envisions creating 65,000 housing units, including land plots and flats, encompassing Rasmalé, Gulhifalhu, and Giraavaru Falhu, representing a substantial commitment by the current administration.