State government has decided to grant a sovereign guarantee of $368.9 million for the establishment of a housing unit in Hulhumale' to a Chinese corporation.
According to the information shared with financial committee of Ministry of Finance and Treasury, the guarantee was issued for the development of 7,000 housing units under the second phase of Hulhumale' development.
Guarantee was assured to a loan withdrawn through Industrial Commerical Bank of China (ICBC) on August 14.
The letter sent to the financial committee cited the state government has granted the sovereign guarantee for ICBC loan under the agreement made between Hulhumale' Development Corporation (HDC) and China State Construction Company Limited.
While the total project value was accosted at $434 million, the guarantee was issued for 80% of the total value.
Furthermore the letter had also validated the Attorney General's Office had evaluated the process and concluded the agreement met standard procedures, while President's Office has granted signing rights to Finance Ministry regarding the sovereign guarantee.
