Cost of 206 projects is MVR 2.7 billion

Mihaaru News has reported that the cost of the 206 agreements that were signed today between the government and 53 private Maldivian companies will be MVR 2.7 billion.

The government has not officially disclosed the cost of the projects that were given to the 53 companies under Contractor Financing at Barceló Nasandhura. However, a trusted source told Mihaaru News that the total cost of the projects is MVR 2.7 billion.

This is the first time such a high number of projects were signed by the government in one day.

The 206 projects will cover development in 123 islands. The projects include areas such as housing, land reclamation, education, health, sports and Waqf buildings.

Finance Minister Moosa Zameer stated during the ceremony that the companies that were awarded the projects under Contractor Financing would receive compensation via Maldives' banking system.

"The Maldivian businesses that have been given the projects will be steadily compensated under Contractor Financing policies via banking finance," said Zameer.

The minister stated that the trust the companies being financed for the projects have in the government and Maldives' economy is important to the government.

The minister went on to say that the agreements will be within the Public Investment Framework and that arrangements to monitor the work will be included in the framework so as to reduce risk and ensure payment assurance.

During the ceremony, President Dr. Mohamed Muizzu stated that the companies that were awarded the 206 projects had submitted a three-year "Audit Financial Statement". The President also assured that the projects will be awarded within the rules and regulations established within the Public Finance Act.

While emphasizing the statements, he said that a company that had not submitted the audit report would not be able to sit at the table where the agreements were signed.

"Along with that, a company that has not abided by the bank's procedures would not have been able to come to this venue to sign the agreement. We have awarded companies who have had a good track record in their professional work," said President Muizzu.

President Muizzu stated that agreements were signed today to construct 825 housing units in 13 islands, and practical work on housing projects in the Male' region will begin very soon.

The President said that the practical work for the awarded projects are to begin 21 days from today, as per the agreements.