Additional 4,000 flats to be constructed under India's assistance

The government of Maldives has decided to develop an additional 4,000 housing apartments financed under the line of credit previously issued by India's EXIM Bank.

The revelation was made by Finance Minister Dr. Mohamed Sahfeeq today, while speaking at the public accounts committee of the parliament. Explaining the state's fiscal strategy, the minister said that solving the housing crisis is a significant aim of the government and while all social issues in the country stem from housing issues, it is a priority as well.

"Finding a total solution for housing is an aim of this government. The root cause of all social issues is linked to housing problems. [We need] to make policy changes to solve this," he said.

He explained that one of the policy changes would be to dedicate 50 percent of next year's Public Sector Investment Programme (PSIP) budget.

"Now we're looking to [move forward with] the ongoing India's LOC (line of credit), which is a facility received on really good terms. To see if we can develop 4,000 housing units under that," the minister said.

However, he did not specify how much would be utilised from the line of credit, and neither did he mention where the project would be located.

The Indian government, in 2018, extended a USD 800 million line of credit to the Maldives for various development projects. An additional USD 100 million was also arranged in 2022 to expedite these projects.

Minister Shafeeq said that they hope an additional USD 300 million would be arranged from the credit facility in order to move forward with the flat development project.

The 4,000 apartments which were decided to be given under the Gendhoruveriyaa [home owner] Scheme by former President Ibrahim Mohamed Solih's administration and developed by two Indian companies in Hulhumalé Phase 2 are also financed by the Indian EXIM Bank's line of credit worth USD 227 million.