The Kuwait Fund for Arab Economic Development (KFAED) has rescinded the funds allocated for the construction of hospitals in various parts of Maldives, Health Minister Dr. Abdullah Khaleel said.
Initially announced in April 2022, the KFAED's assistance aimed to establish 30-bed hospitals in HDh. Hanimaadhoo, Sh. Milandhoo, N. Velidhoo, K. Thulusdhoo, ADh. Maamigili, V. Felidhoo, and Th. Vilufushi.
Addressing queries during Tuesday's parliamentary session, Minister Khaleel disclosed that the funding pledged by the Kuwait Fund was retracted due to a dispute regarding the procurement process. The Kuwait Fund halted the awarding process when Maldives insisted on a specific procurement approach, which was in violation of the Fund's procurement rules, he clarified. The minister emphasized that international funding agencies are required to complete procurement within the rules set by the agencies.
"I am informed that the Kuwait Fund stopped the awarding process when the Maldives insisted on proceeding with the project awarding in a specific manner inconsistent with Kuwait Fund's procurement rules," Khaleel said.
Minister Khaleel said the government was actively working to reinstate the funds again. Meanwhile, efforts are also underway to obtain funding for the hospital project through other avenues, he said.
