Minister Raafiu explained that the delays in the implementation of projects in the islands are due to budget constraints and material procurement delays.
Projects costing MVR 2 million has been entered into the budget as MVR 200,000, leading to delays in project timelines, revealed Sports Minister Abdulla Raafiu today.
The minister was summoned to the Parliament, and was questioned over the delays in progress of projects within the islands. Answering these questions, he explained that the biggest reason for these delays is budget constraints.
Minister Raafiu detailed that when a project is awarded, the amount allocated for it in the budget is quite small. After paying the 15 percent advance required to commence a project, there are no funds left in the budget to make a second payment for the project, he said.
"Then we have to transfer those funds from another code [of the budget]. When we look at which code we can transfer those funds from, the code we take the funds from ends up being a project in some island too. What happens is the project in that island also needs to happen," the Minister said.
"So we have to extend the project again to the next year," Minister Raafiu explained the situation, during his first summon to the Parliament.
"There are projects worth MVR 2 or 3 million which has been entered into the budget as MVR 200,000 or 300,000. So when [we go] for a second payment, it's very difficult for us to proceed."
Minister Raafiu also highlighted that delays in receiving materials ordered for the project is also another reason for the delays. He detailed that at times the company contracted for the project hires sub contractors, who then hire another subcontractor which further delays the procurement of materials.
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