MVR 9.1 billion allocated for PSIP projects in 2016 budget

A record amount of MVR 9.1 billion has been allocated for Public Sector Investment Programme (PSIP) projects in the Projected State Budget for 2016.

Presenting the budget to the parliament today, Minister of Finance and Treasury Abdulla Jihad said that two areas were given priority in deciding PSIP projects, which were completing ongoing projects and improving general living standards.

“The projects will facilitate economic development and help the government fulfil its pledges. Every fulfilled pledge is a milestone in terms of development,” Jihad said.

PSIP projects make up 33 percent of the 2016 budget.

“I am pleased to announce that this is the largest amount allocated in a state budget for developmental projects in the history of the Maldives,” he said.

The MVR 9.1 billion consists of MVR 5.2 billion from the general budget, MVR 2.7 billion foreign loans, and MVR 1.2 billion grants and tourist fund.

Major projects planned for next year include:

- Development of Ibrahim Nasir International Airport (INIA)

- China-Maldives Friendship Bridge between Malé and Hulhulé

- Ongoing and new housing projects

- Construction of a national research facility adjacent to Indira Gandhi Memorial Hospital (IGMH)

- Land reclamation for an airport in Shaviyani Funadhoo.

The largest portion or 63 percent of the PSIP projects amount would be spent on improving harbours and airports. The total cost of these projects is estimated at MVR 2.6 billion, which includes MVR 783 million for harbour projects in 62 islands.

MVR 1.2 billion has been allocated for land reclamation and road construction projects. Land expansion has been planned in 9 islands, and land reclamation in 19 islands.

The PSIP projects planned for 2016 also includes road construction and development of south-western harbour in Malé.

MVR 900 million has been allocated for 96 water and sewerage system projects, and MVR 793 million has been allocated for 60 environment protection projects, which includes 34 projects aimed at coastal protection.

The amount allocated for reducing expenditure on electricity and development of renewable energy is MVR 340 million. This includes installing a 50 megawatt electricity production system in Malé, establishing an electricity network to connect Malé and Hulhumalé, and renewable energy projects in the islands.