The Indian company Rail Vikas Nigam Limited has been appointed as the Project Implementation Agency for the Uthuru Thilafalhu (UTF) project for USD186 million (MVR 2.9 billion), media outlets from India reported on Wednesday.
According to "Business Today," the order for the strategic project was placed by India's Ministry of External Affairs, and it is to be completed within a period of two years.
The company's shares rose by five percent after winning the UTF contract yesterday.
India's state owned Vikas Nigam Limited incorporated in 2033 implemented multiple railway construction projects in India.
The Maldives government signed an agreement with the Indian government in February 2021 to develop a port for the Maldives National Defence Force (MNDF) Coast Guard in Uthuru Thilafalhu, in Kaafu atoll.
The development of a dedicated dockyard for the Coast Guard was discussed in 2016 by the previous administration, and a Defence Action Plan was also formulated then.
The initial discussions on the development of UTF began in 2013, during the presidency of former President Dr Mohamed Waheed, when the Indian Defense Minister at the time visited the Maldives. Since then, discussions have also continued with representatives and SOEs of other countries on their official visits to the Maldives.
However, awarding the UTF to an Indian company has drawn criticism from the opposition.
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