Housing Minister Dr. Abdulla Muththalib stated tonight that the cost of reclaiming the entirety of Rasmale' will be a smaller amount than previously estimated, at approximately USD 330 million.

Speaking tonight at the “Ahaa” forum, organized by the President’s Office and state media PSM, Minister Muththalib said he had previously stated at a press conference that reclaiming the entirety of Rasmale’ was estimated to cost between USD 500 million and USD 700 million.

Amid public discussion over the cost of reclaiming Rasmale’, a question submitted to tonight’s programme asked the government to clarify the total expenditure on the project, including funds spent from the state budget or other sources.

In response to that question, Minister Muththalib stated that the cost for the project was previously estimated by looking at the projects being run by the government around the time the project started, the market rates at that time, and the expenses that would go along with shore protection.

However, as Rasmale's land reclamation was proceeding while entrusted to various government companies, through efforts to reduce costs as much as possible, by the end of this year, the project's cost will be approximately USD 330 million, he stated.

"Meaning that the estimated amount to be spent by the state to reclaim the 1,009 hectares of the entire Rasmale' is USD 330 million," Minister Muththalib stated.

"So if we look at 500 hectares of it, that is around USD 160 million. Therefore, the figure we actually estimated when we first started out was the figure we stated by looking at the costs incurred for the projects that were being reclaimed at that time by this government in Gulhifalhu and Giraavarufalhu."

Minister Muththalib stated that it was estimated that the cost would be lower than previously thought due to various works such as the work done to reclaim land by chartering dredgers.

“Therefore, when we look at the amounts spent on land reclamation in Male' and across the Maldives, we have managed to carry out the work at relatively reasonable rates. Claims by various people that USD 700 million or USD 1 billion has been spent are being made for political purposes to create fear among citizens,” he said.

Minister Muththalib said a significant portion of the USD 330 million spent on reclaiming Rasmale’ so far had been paid in Maldivian rufiyaa. He said the government had made the payments in local currency to minimize the project's impact on the country's foreign currency reserves.

Minister Muththalib said the project was not awarded to companies solely to carry out land reclamation, adding that the government and the companies worked together to keep costs as low as possible.