Ras Malé reclamation cost reduced to $330 million, says minister

Housing Minister Dr Abdulla Muththalib has said the government now estimates that the reclamation of 1,000 hectares for the Ras Malé development project can be completed for USD 330 million, compared with an earlier estimate of up to USD 700 million.

Speaking at the 'Ahaa' public forum on Monday evening, Muththalib said the government had taken measures to reduce reclamation costs and was working towards completing the project by the end of this year.

The Minister disclosed the revised estimate in response to a question about the cost of the project.

The Ras Malé development has faced criticism over the lack of disclosure of project expenditure and details of an agreement involving UAE-based Eagle Hills for the development of part of the reclaimed land.

Some critics have also suggested that reclamation costs could exceed USD 700 million.

Muththalib explained that the earlier estimate of between USD 500 million and USD 700 million had been calculated using prevailing market rates and the costs of reclamation projects undertaken by the previous administration.

"We made those calculations based on market rates at the time, the extent of shore protection required and other factors. We also considered the costs incurred by the previous government in reclaiming Gulhifalhu and Giraavarufalhu," he said.

However, the Minister said the government had since identified ways to reduce expenditure on reclamation works.

"The current estimate for reclaiming 1,000 hectares of Ras Malé is USD 330 million. For 500 hectares, the cost is USD 160 million," Muththalib said.

He attributed the reduction partly to measures taken while assigning reclamation works to various state-owned companies, with efforts made to minimise costs.

The Minister did not provide a detailed breakdown of the revised estimate or explain how the projected savings would be achieved.

Muththalib said the government was working to complete reclamation at Ras Malé before the end of 2026.

The Ras Malé project is among the government's housing and urban development initiatives, involving the reclamation of land for residential and other developments.

The project has also attracted scrutiny over the proposed involvement of Eagle Hills, with questions raised about the financial arrangements and the allocation of reclaimed land.

The revised estimate represents a reduction of approximately 53 per cent from the earlier upper estimate of USD 700 million, although the Minister did not disclose the amount already spent on reclamation or the remaining expenditure required to complete the works.