CMC to minister: 'Good intentions' drove 140 hectares dredged despite difficulties
CMCC reported that it has dredged more than 140 hectares across both sites, at a cost exceeding USD 20 million.
Capital Marine and Civil Construction (CMCC) has responded to recent remarks made by Housing Minister Dr Abdulla Muththalib concerning delays in the dredging projects at Hulhumalé Phase III and Giraavaru Falhu.
Two government companies have awarded dredging works to CMCC. Fund Management Corporation contracted CMCC to dredge 160 hectares at Giraavaru Falhu, while the Housing Development Corporation (HDC) contracted CMCC to dredge 63 hectares for Hulhumalé Phase III.
At the ‘Ahaa Forum’ on Monday night, Minister Muththalib attributed delays in the work to CMCC's suspension of operations. He stated that the previous government had made the agreements, and that the contractor had demanded payment for each stage of work following the initial advance. According to the minister, CMCC was paid an initial USD 20 million (MVR 308 million), followed by an additional USD 15 million (MVR 231 million). However, the contractor has reportedly completed only USD 20 million worth of work to date.
In a statement issued Thursday, CMCC addressed the claims. The company said work had been temporarily halted due to current financial constraints, delays in project approvals, and a lack of clarity from the government on price recovery mechanisms. CMCC added that procurement planning had become difficult due to these uncertainties.
The company stated that it did not suspend operations out of dissatisfaction with payments and said it had relied on government assurances. CMCC claimed that a majority of the work had been completed without upfront or advance payments. The company noted that equipment remains on standby in the Maldives, with procurement continuing.
CMCC reported that it has dredged more than 140 hectares across both sites, at a cost exceeding USD 20 million. The company also said the minister’s remarks may not have considered other associated costs, including bund wall construction, freight, engineering services, and site logistics.
In its statement, CMCC reiterated its intention to maintain a working relationship with the Maldivian government and resolve outstanding issues through dialogue. It expressed willingness to undergo an independent third-party audit and said it has documentation to support its work and expenses.
The Giraavaru Falhu and Hulhumalé Phase III dredging works are part of the Binveriya housing scheme. Under the scheme initiated by the previous government, 2,000 plots were allocated from Giraavaru Falhu, of which 1,347 were later reassigned to Gulhifalhu. Hulhumalé Phase III includes a further 1,000 plots.
