MVR 1 billion added for bridge, Addu road projects
The additional funds are part of the MVR 5.8 billion supplementary budget presented for the remainder of the year.
Additional funds have been included in the MVR 5.8 billion supplementary budget presented for the remainder of the year for the Greater Male Connectivity Bridge and Addu Road Construction Project.
According to the supplementary budget of MVR 5.8 billion presented by the government to the parliament on Monday along with the 2023 budget, additional funds have been allocated to the housing ministry for:
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MVR 924 million for Thilamale Bridge Project; MVR 543.3 million approved for the year
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MVR 80.4 million for Addu Road Construction Project; MVR 109.2 million approved for the year
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The total amount of funds to be added for the two projects is MVR 1 billion
Both the projects have been contracted to an India's Afcons Infrastructure and funded through a loan from Exim Bank of India. In the past, various concerns about the pace and quality of work of these projects have been raised by both members of parliament and the general public.
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Addu road construction project is worth MVR 1.1 billion
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The project is part of a $800 million (MVR 12.4 billion) loan from Exim Bank
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Greater Male Bridge Project is worth $500 million (MVR 6.2 billion)
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Exim Bank of India provides $400 million loan for the bridge project
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The remaining $100 million will be Indian grants
According to the budget book, since the projects are progressing faster than expected, it is now expected that funds will be spent more this year than what was budgeted for them.
During President Ibrahim Mohamed Solih's official visit to India in August, $100 million was added to the existing $800 million credit line due to the rising commodity prices in the global market.
Major chunk of supplementary budget for fuel subsidies
According to the finance ministry's supplementary budget estimates, a major chunk of the budget goes towards subsidies that have increased due to rising fuel prices and capital allocation to Housing Development Corporation (HDC).
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for fuel subsidies - MVR 1.9 billion
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To HDC - MVR 1.1 billion
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For power subsidy to Fenaka - MVR 439.7 million
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SIFCO Housing Project - MVR 340.7 million
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For Aasandha - MVR 906.7 million
