Land reclamation work to construct an industrial harbour in Gulhifalhu has been awarded to a Dutch Company, Royal Boskalis Westminster for USD$ 53 million.
The project was not opened for bidding.
The agreement for the project was signed on Tuesday on behalf of Planning Ministry by Director General Fathimath Shana Farooq. Area Manager David Boustead signed the agreement on behalf of Boskalis company.
Under this agreement, 16 million cubic meters of land will be reclaimed and 4 km sea wall will be constructed within 180 days. Boskalis has previously carried out land reclamation projects in the Maldives. Between 2007 and 2015, the company reclaimed 198 hectares of land in 10 islands across Maldives.
While the project to reclaim land on Gulhifalhu has been contracted to Boskalis, Maldives Transport and Contracting Company (MTCC) owns the largest dredging fleet in the Maldives, including ‘Mahaa Jarraf’.
Former Housing Minister Dr Mohamed Muizzu has stated that had the project been given to MTCC, the land could have been reclaimed at a maximum cost of MVR 37 million, and the sea wall built for US$ 7 million. Therefore, the total project would have cost US$ 44 million, said Muizzu.
"The project could have been completed for US$ 44 million at the most. The money spent on the project would have entered a government company", said Muizzu.