The Ministry of Health has said the agreement made with an Indian company to develop four hospitals in the Maldives was terminated because they had not received funding for the project within the outlined deadline.
The contract to design and build hospitals in Haa Alifu atoll Dhidhoo, Raa atoll Alifushi, Dhaalu atoll Kudahuvadhoo, and Gaafu Alifu Villingili was initially signed with Telecommunications Consultants India Limited (TCIL) on May 30, 2022.
This project was to be carried out by TCIL via a buyer credit scheme from India's Exit Bank, costing USD 57 million (MVR 882 million). As the funding was provided by Exim Bank, they sought contractors for this project.
The agreement signed then stated hospitals with a 50-bed capacity would be developed in Villingili, Dhidhoo, and Kudahuvadhoo, while a 30-bed capacity hospital would be developed in Alifushi.
However, nearly a year after the contract was made, the government signed an agreement with the Chinese International Development Cooperation Agency on May 2, last year, to work on the same four hospitals.
In their reply to questions asked by Mihaaru news under the Right to Information Act (RTI), the Ministry for Health said on Tuesday that the agreements relating to the four hospitals were handed over to China because the agreement with India had lapsed.
As per the agreement, if funds for the project are not raised within 90 days, the deal will be cancelled. By the time the deal was declared void, the TCIL had not done any work or paid any money for the projects.
However, when the deal was scrapped, the company did not do anything. The ministry also said that no money was given to TCIL.
The Chinese agency was given an agreement to develop the feasibility for the construction of the four hospitals. They are yet to hand over the construction to a contractor.
Speaking at the signing ceremony, Foreign Minister Abdulla Shahid said that the work involved in the development of the health sector in the Maldives will begin without any delay.
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