90% of housing budget untouched as Muthalib claims ‘more projects than ever’

Housing Minister Dr. Abdulla Muthalib, on Sunday, has claimed that more infrastructure projects are currently underway than ever before, despite 90 percent of the record budget for housing allocated for this year – deemed by the government as a “golden year” for housing – remains untouched.

President Dr. Mohamed Muizzu, who served as the Housing Minister for seven years, specialised this year’s state budget for housing. One of his biggest electoral pledges is to provide housing for everyone above 18 years of age within his five-year term.

Over MVR 3 billion was allocated for housing in this year’s state budget, a record amount. MVR 1.8 billion out of MVR 12 billion allocated for PSIP projects was also allocated for housing. Back then, the government said housing projects will proceed across the nation.

As the year draws to a close, Finance Ministry statistics show that the majority of the budget remains unused. In this regard, only 10 percent of the housing budget has been spent, leaving 90 percent untouched. Only MVR 186 million has been spent from this year’s record housing budget so far.

Minister Muthalib was questioned regarding the matter during a press conference held at the President’s Office on Sunday during which he denied allegations on lack of projects. In this regard, he said the allegations stem from few projects in the Malé area, while numerous projects are in fact underway across the islands.

“The only thing you all have not seen is the commencement of the major project in Male’ area. On the contrary, the current administration is undertaking more infrastructure development projects at islands than ever seen before,” he said.

According to the Minister, the current administration has fully completed three projects. He alsp provided details of some of the projects underway. They include:

• 13 projects underway in islands
• 25 projects contracted this year
• Physical work on Bank of Maldives (BML)-funded 3,000 housing to commence soon
• Physical works on India-assisted 4,000 housing units to commence soon
• Project with Saudi’s assistance to also commence soon

Minister Muthalib detailed that physical works on BML’s 3,000 housing units will commence within this month or early next year. 300 housing units under the project will be developed at Vilimale’, while the remaining housing units will be developed at Hulhumale’ Phase I and Phase III.

He added that an Indian team is presently in the Maldives as preparations are underway to commence physical works on 4,000 housing units funded under a Line of Credit from India.

The Minister also said preparations were underway to implement a project to construct affordable flats by providing free land along with additional assistance. He added that around 12,000 housing units would be developed in this trajectory which will be offered at affordable prices.

He stressed that this would significantly lower the demand for social housing.

“We will carry out housing projects beyond the scale any previous administration has undertaken,” he said.