The government expects to complete the reclamation of 1,009 hectares of land under the Rasmalé project at an estimated cost of USD 330 million, significantly below the initial projection of USD 500 million to USD 700 million, Minister of Housing, Land and Urban Development Dr. Abdulla Muththalib has announced.
Speaking at the “Ahaa” public forum organised by the President’s Office and Public Service Media (PSM), Minister Muththalib said the revised estimate reflects cost-saving measures introduced during the implementation of the project.
Responding to public concerns over the project’s expenditure, the Minister explained that earlier estimates were calculated using prevailing market rates, costs associated with ongoing government projects and anticipated coastal protection expenses.
However, by involving state-owned enterprises and directly chartering dredgers, the government has substantially reduced the projected expenditure.
According to the Minister, reclaiming approximately 500 hectares would cost around USD 160 million, while the entire 1,009-hectare project is expected to cost approximately USD 330 million by the end of 2026.
He explained that the initial estimates were based partly on the reclamation costs of Gulhifalhu and Giraavaru Falhu under the previous administration.
Minister Muththalib also rejected claims that the project would cost between USD 700 million and USD 1 billion, describing such figures as politically motivated attempts to create public concern.
He maintained that the government had secured competitive reclamation rates through direct procurement arrangements and close coordination with state-owned companies.
Majority of payments made in Maldivian Rufiyaa
The Minister further revealed that a substantial portion of the project’s estimated USD 330 million expenditure has been settled in Maldivian Rufiyaa rather than US dollars.
He said this approach was deliberately adopted to reduce pressure on the Maldives’ foreign exchange reserves and preserve dollar liquidity.
Rather than relying entirely on external contractors, the government coordinated with state-owned enterprises to manage reclamation operations and control costs, he explained.
The Minister reiterated that the USD 330 million figure represents the projected total reclamation expenditure for the entire Rasmalé development, with the revised estimate reflecting savings achieved through the government’s implementation strategy.
The figures remain government estimates, with final expenditure yet to be confirmed.
