India grants $40m loan to build three flats transferred to Hulhumale

Housing Ministry has said that Indian government has agreed to give a loan of $40m for the construction of three flats which have been transferred to Hulhumale’ under the Veshifahi program.

Housing Minister Dr Mohamed Muiz said that the agreement for the long-term loan with interest will be signed sometime next week.

“The concessional terms of the loan are very good, it’s at a low rate and can be repaid over a long period of time,” Muiz said.

The land space for the flats to be built with the loan has been handed over by HDC to Housing Ministry. Former government’s plan was to build them in Male’, however the current government has decided to build the flats in Hulhumale’ instead.

The land spaces designated for these flats by the former government were Greenge, Boduge and Male’ waste area. The ministry said that they were changed to Hulhumale’ because building new flats in Male’ would only intensify the problem of congestion in Male’.

“Despite the decision having been made by the former government to build these flats, construction had not commenced. So we transferred them to Hulhumale’,” the Minister said.

He added that no changes will be made to the contractors assigned for this project, and that construction will begin as soon as the agreement is signed.