Minister of Construction and Infrastructure, Dr. Abdulla Muththalib, stated that the cost for the contractor to reclaim Fushi Dhiggaru Falhu, a lagoon south of Malé, would exceed USD 700 million (MVR 10.7 billion).
The land reclamation for the lagoon being developed into "RasMalé" is carried out by the Sri Lankan company Civil Marine Construction Company (CMCC).
The state is not incurring any additional expenses for this project. In return, the company receives 70 hectares of land in the Maldives.
When asked about the cost of the project at a press conference held by the Ministry of Construction on Thursday, the minister said that even if the state did not incur any expenditure, reclaiming such a large area would still involve significant costs.
Minister Muththalib said that the project would cost at least USD 500-700 million.
"That is if we consider very shallow waters around the area, about one meter deep," the minister said.
The minister, however, said that the cost of the project would be significantly higher when taking into account the depth of Fushi Dhiggaru Falhu lagoon, considering the amount of sand required for reclamation and the distance required to collect the sand.
"The contractor will take all the risks, and when the state commits a certain amount of land [70 hectares], they will reclaim the rest of the land. This is a contract where no financial transactions have occurred," he said.
The minister also said that this project is being conducted transparently, without concealing any details. He mentioned that the government acquires 1,093 hectares of land from Fushi Dhiggaru Falhu, while CMCC obtains 60 hectares from the lagoon and 10 hectares from Hulhumalé.
Fushi Dhiggaru Falhu is set to be developed as part of President Dr. Mohamed Muizzu's 'total solution' policy for housing, and it has been included for reclamation within the first 100 days of his administration.
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