The entire Rasmale reclamation project is now expected to cost the state USD 330 million, Housing Minister Abdulla Muththalib said last night.
A total of 1,009 hectares of land is being reclaimed at Fushidhiggaru Falhu in Kaafu Atoll to develop Rasmale.
Speaking at the “Ahaa” forum jointly organised by the President’s Office and state broadcaster PSM, Muththalib said the initial estimate of USD 500 million to USD 700 million for the Rasmale project had been based on the costs of projects carried out by the previous government and market rates.
“However, through efforts to minimise costs by assigning the reclamation work to various state-owned companies, we now know that by the end of this year — even if some reclamation remains unfinished at the end of the year, although the target is to finish this year — the cost by that point will be around USD 330 million. This means the estimated cost to the state of reclaiming all 1,009 hectares of Rasmale is USD 300 million,” Muththalib said.
He said much of the USD 330 million had actually been spent in Maldivian rufiyaa. He added that this was a step the government had taken to avoid putting further pressure on the dollar shortage.
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