China retracts offer to finance housing project

The Bank of China has retracted its offer to extend a loan to finance the construction of 1,700 housing units in Hulhumale'.

The Bank of China offered to finance 85 percent of the housing project valued at MVR 308.2 million, and the Maldives government made arrangements to issue sovereign guarantees against the loan. The project was contracted to China's Sino Hydro Global Construction company, and the project was inaugurated on March 10, 2020.

According to information published on the government website Isles, which publishes information on ongoing projects, the Bank of China has retracted the financing offer extended for the project. The reason for withdrawing the offer is unclear. The website said the contractor is negotiating with other banks to secure financing for the project.

The project's scope includes the construction of 11 towers of 15 and 16 floors. The towers will have 1020 three-room apartments of 900-square feet and 680 two-bedroom apartments of 650-square feet.

The government is hopeful to start the project in June next year. The contractor will be granted two years to complete the project.