No cost overruns despite bridge delay, minister says
"Financially, there is not much implication. But economically, the delay is a loss," the Minister said.
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By
Aishath Fareeha Abdulla
Infrastructure minister Dr Abdulla Muthalib has said that the amount of money to be paid to the contractor, Afcons of India, will not increase even if the construction of the Greater Male Connectivity Bridge has slid off of schedule and the deadline has been extended.
The mega infrastructure development project, which is being carried out in Maldives by the last government under the loan and grant assistance of India, has been delayed.
As per the agreement for the Greater Male Connectivity Bridge, it should be connected from Male to Thilafushi by May 17, 2024.
However, the contract was amended on the last day of the previous government and the work is now contracted to be completed by 30 September 2026.
At a press conference on Thursday to share details of the bridge project, Muthalib said that although a supplementary contract was signed, there was no additional money to be paid to the contractor.
The cost of the bridge project is USD 500 million excluding GST.
With the change in contract, the government will have to spend on the cost of staff hired by the ministry for the project and for the work done by consultant Arup Limited.
"However, the amount due to the contractor will not be increased. The contract has not been signed to incur additional expenses from the contractor," Muthalib said on Thursday.
The minister said 37.33% of the total contract price has been paid to the contractor. That's USD 186.7 million. This includes the advance for the start of the work.
"Financially, there is not much implication. But economically, the delay is a loss," he said.
The minister said that if the work had proceeded as planned, 96% of the work should have been completed by now.
"1.13% of the work should have been completed from Gulhifalhu to Thilafushi. If you look at the whole work, 81% of the work should have been completed. However, 29% of the work has been completed by November 15”, Muthalib said.
He said the work was 52% slow compared to the schedule.
The bridge is designed to last 120 years. The minister said government consultant Arup is monitoring the work 24 hours a day to ensure the quality of the bridge.
