The President’s Office has revealed the Hiya housing project conducted by the previous administration was awarded to the company that had proposed the highest price.
Speaking at a press conference held to provide information on the prices of Hiya flats, Spokesperson at the President’s Office Mohamed Mabrook Azeez said five companies had submitted proposals to carry out the Hiya project, of which the company that proposed the price of USD 62,000 per unit was awarded the contract. He noted all other companies had proposed prices in the range of USD 50,000 – USD 52,000.
Speaking further, the spokesperson said there were several other issues in the awarding of the contract that led to the state incurring losses. As such, he noted the scope of the contract only included construction work and the installation of electrical and water supply networks. He added important components such as tiling and installation of doors, kitchen cabinets, lights and fans were not included in the contract.
The spokesperson stated the project was not carried out to suit a social housing scheme, noting even the loan taken for the project had been issued at commercial rates. He added there was no provision for waste management, security and commercial area when the Hiya buildings were constructed, noting these components were later incorporated by the current administration.
Mabrook further stated the administration has decided not to take downpayments from the recipients of Hiya flats. He added the administration will subsidise USD 207 million for the repayment of loans for the flats.
The project to construct 7,000 housing units under the Hiya housing scheme was awarded to China State Construction Engineering Corporation (CSCEC) in 2017. Although the project was contracted to be completed by 2020, the flats are yet to be fully completed. The government has announced flats will be handed over to recipients in late-July.