Government terminates Hextar Global agreement for council buildings, seeks new contractors

The Maldivian government has terminated its agreement with Malaysia’s Hextar Global for the construction of council office buildings in 55 islands, just five months after signing the contract. The project will now be reassigned to a new contractor.

In a post on X, Minister of State for Local Government Adam Shareef Umar announced that the agreement signed on January 20 was cancelled after Hextar failed to accept modifications proposed by the councils.

The Minister clarified that the project, which was to be executed on a contractor-finance basis, was terminated without any compensation owed to the company.

The agreement had been signed by the Ministry’s Permanent Secretary, Dr. Fathimath Muna, and Hextar Maldives Managing Director, Ali Shareef.

Following the termination, Minister Adam Shareef confirmed that the Ministry has received new proposals from other companies and is currently reviewing them. He noted that the aim is to reassign the project to a Maldivian contractor.

The Minister had earlier stated that construction work would begin in April, but the deadline passed without progress. If the original timeline had been followed, the Ministry expected the buildings to be completed within two and a half years.