Projects on hold as MVR 3.6b budgeted for MVR 39b projects, govt says

Construction minister Dr Abdullah Muththalib said on Monday that several projects have been delayed due to inadequate funds allocated for signed projects in this year’s budget.

Speaking at a press conference held at the President’s Office, Muththalib outlined the challenges faced by the ministry regarding ongoing projects initiated by the previous administration.

According to Muththalib, the construction ministry had signed a total of 322 projects at the start of this term. The combined cost of these projects is estimated at MVR 39 billion, while only MVR 3.6 billion was allocated for them in the 2024 budget. He explained that this amount represents between 15% and 20% of the required funding to implement the projects for 2024.

"The main question we face is why projects are not progressing. While some projects are ongoing, many are not due to budget limitations. The funds allocated cover only half of the planned expenditures," Muththalib said.

He further clarified that a substantial portion of the allocated budget has been directed towards key projects such as the Thilamale Bridge, Addu road development project, and water and sewerage projects.

The list of 322 signed projects includes:

Of these, 190 projects were signed with the Maldives Transport and Contracting Company (MTCC) and Road Development Corporation (RDC). However, 63 of these projects have not yet been mobilised, and of the 127 projects that began, 68 have stalled.

Muththalib also noted that the ministry is facing unpaid bills amounting to MVR 1.72 billion, which were pending at the start of the term and not yet submitted to the finance ministry. Additionally, over MVR 300 million in bills that were sent to the finance ministry remain unpaid, as these expenses were not included in last year’s supplementary budget.

Despite these constraints, Muththalib reported that since the government assumed office, 37 projects worth MVR 1.97 billion have been completed.