Government is seeking a new contractor to revive the stalled 400 housing units project in Kulhudhuffushi City, the Minister of Construction, Housing and Infrastructure, Dr Abdulla Muththalib has said.
The previous government contracted the project to develop 400 housing units in Kulhudhuffushi in 2022. The project was contracted to the joint venture of Donbez Private Limited and the 23rd Metallurgical Construction Group Co. Limited. The joint venture is tasked with completing the project within 540 days at a price of USD 29 million.
The project involves the construction of five apartment buildings with 400 housing units measuring 1,000sqft each. The ground floor of the buildings will be dedicated to businesses while the surrounding area will be developed with a courtyard and parking area.
Despite construction beginning in 2023, the project had faced significant delays before grinding to a complete halt.
Responding to a question, on national radio, ‘Dhivehi Rajjeyge Adu’ “Ahaashey Bunaan” programme, Minister Dr Muththalib said although the government gave the contractor the mobilisation funds needed to start the construction, the project has come to a complete halt due to the contractor's failure to carry out the work, he said.
The Minister assured that the project will recommence with a new contractor.
"The contractor has stopped work not because the government has failed to make payments. Now the contractor has been given notice to terminate the contract. We will hand it over to someone else who can do it and start it again,” he said.
In addition to the 400 housing units, the Minister said contractors are also being sought for the 2,000 housing units announced by this Administration.
Interested contractors have submitted proposals which will be reviewed and the project will get off the ground very soon, he said.
Kulhudhuffushi is the most populous island in the north with a population of over 10,000 residents.