CMC denies settlement claim allegations

Sri Lanka's Capital Marine and Civil Construction Company (CMC), which was awarded the RasMale' reclamation project, has denied rumors about filing an arbitration claim for compensation.

The government had awarded CMC the contract on December 18, 2023, to reclaim 70 hectares of land in the Male' area in exchange for providing land in Fushidhiggaru and Hulhumale'.

However, due to delays in the project, the government decided not to offer any further opportunities to the company, and the agreement to exchange land in Male' for the reclaimed RasMale' land was also cancelled.

Some media outlets had reported that CMC planned to file an arbitration claim seeking compensation, with further claims that a settlement agreement had been reached between the company and the Housing Development Corporation (HDC) involving a payment of USD 21 million.

However, CMC denied these allegations, clarifying in a statement that the entire RasMale' reclamation project did not proceed as initially planned. As a result, a settlement agreement was made, and the work, including reclamation and shore protection of Site J, was completed as per the revised terms.

CMC said that payments made by HDC were strictly for completed works, with no additional payments or compensatory settlements beyond the contracted work.

The company urged the media not to spread false claims that could damage its reputation, calling for clarity from the government or HDC regarding the matter.

CMC also reaffirmed its commitment to transparency and integrity in all its dealings.

In addition to the RasMale' reclamation project, CMC has been involved in other significant land reclamation projects in Maldives. The company was awarded contracts by HDC for various infrastructure works, including reclamation, road construction, and the development of Hulhumale' Phase 3 and Thilafushi.