MVR 1 billion dedicated to housing projects in major PSIP initiative

The Ministry of Finance announced that out of the total MVR 2.7 billion budget for the 206 Public Sector Investment Program (PSIP) projects handed over to local companies today, MVR 997.38 million (nearly MVR 1 billion) is allocated specifically for housing projects.

The contracts for the 206 PSIP projects were awarded to local Maldivian companies at a ceremony held at Baroselo Nasandhura in Malé.

The Ministry of Finance stated that the MVR 2.7 billion portfolio includes projects across the atolls covering housing, education, health, waste management, sports facilities development, police infrastructure, and mosques. The Ministry confirmed that the projects will be financed under the Investor-Finance Model.

The 206 projects handed over to local companies today cover various development works across 123 islands nationwide.

Finance Minister Moosa Zameer stated at the ceremony that the Maldivian companies undertaking these projects, which are being implemented across the Maldives under the Contractor-Finance model, will receive financing through the Maldivian banking system.

"In line with the principles of contractor financing, the Maldivian businesses awarded these projects will receive timely payments through banking finance," Zameer said.

The Minister acknowledged the importance of the trust shown by the financing companies in the government and the Maldivian economy.

He added that the agreements signed today fall under a common investment framework, which includes mechanisms to monitor the work, ensuring financial certainty and mitigating risk for the financing entities.