MVR 4b for 3 lagoon reclamation; financing via 2 plot sale

Reclamation of land from Hulhumale phase 2, K. Thilafushi industrial island, and the Dhiyanaru lagoon in Kaafu Atoll was awarded at a cost of $259 million (MVR 4 billion), with funds raised from selling two plots in Hulhumale and Thilafushi, Urbanco said Wednesday. 

Under an agreement signed between Urbanco and Sri Lanka's Capital Marine and Civil Construction (CMC) last week, the company will reclaim: 

Despite announcing the award, Urbanco has not disclosed details of the project.

When asked about reports that the agreement for the project included giving CMC a plot from the reclaimed land in Hulhumale, Urbanco denied it and shared additional details about the project with Atoll Times on Wednesday.

"However, the total cost of the project is being paid under a payment plan. Funds will be raised by selling 10 hectares of land in Hulhumale and 9.6 hectares in Thilafushi," an Urbanco official said.

According to Urbanco, CMC has been given a three-year deadline to complete the project. The works to be done under the agreement are:

The project has been awarded to CMC on contractor finance basis. For the various works involved in the project, CMC will use various subcontractors including Dutch dredging company Boskalis, which is reclaiming land for the port development at Gulhifalhu lagoon, Urbanco said.

Although the project has a three-year deadline, state housing minister Akram Kamaluddin told Atoll Times on Wednesday that the land needed to award plots to natives of Male under the Binveriya scheme will be reclaimed by the end of September. 

Supporting Akram's remarks, Urbanco official said the agreement stipulated three years for the entire project and the dredging would not take that long.

Urbanco has drastically altered the master plan to reclaim the lagoon area of Hulhumale Phase 2 where the previous government had decided to develop a cruise terminal.

The government of President Ibrahim Mohamed Solih has decided to build the cruise terminal at the lagoon next to the Dhiyanaru lagoon or Dhiyanaru Lagoon 2.

Meanwhile, housing ministry has earlier said that the permanent registry of land under the Binveriya scheme will be handed over to all land recipients before November 11.

In July, President Ibrahim Mohamed Solih announced that the administration plans to allocate 2,000 housing plots in Gulhifalhu, while reserving another 2,000 for the housing scheme in Giraavarufalhu.

Land reclamation in Giraavarufalhu is underway.

The Binveriya scheme, which is reserved for Male natives, also includes allocating 2,200 plots in Hulhumale, bringing the total number of land plots granted under the plan to 6,200.