Gov’t Faces USD 300,000 Daily Payment to Contractor Amid Reclamation Pause
Photo: Miveshi
Former State Minister for Housing, Akram Kamaluddin has asserted that the government faces a potential financial liability of USD 300,000 per halted reclamation activity on Gulhifalhu, owed to Netherlands-based contractor Boskalis.
The High Court issued an injunction yesterday, mandating the suspension of the ongoing reclamation efforts on Gulhifalhu.
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Environmental activist Humaida Abdul Ghafoor initiated legal proceedings in the Civil Court, seeking to halt the Gulhifalhu project, citing concerns over irreversible environmental damage. Following the initial denial of an injunction by the Civil Court, Abdul Ghafoor appealed the decision to the High Court.
Yesterday, the appellate court granted the injunction, effectively pausing the project pending a final ruling.
Akram highlighted contractual agreements between the government and Boskalis, which stipulate compensation for stalled workdays. He emphasized the court’s decision’s potential financial implications for the government, attributing the situation to what he perceives as the current administration’s inadequacy.
Akram referenced the Civil Court’s previous refusal to grant such an injunction, citing documentation from the Environmental Protection Agency (EPA). He argued against project suspension based on private appeals, emphasizing the EPA’s lack of action in this regard.
The injunction halts the project after more than 100 hectares of the planned 150 hectares have already been reclaimed. President Dr. Mohamed Muizzu had additionally outlined intentions to reclaim an extra 85 hectares.
The Gulhifalhu reclamation, alongside Giraavarufalhu and Hulhumale’, forms part of the ‘Binveriya’ housing initiative, initiated by former President Ibrahim Mohamed Solih.
Under his administration, plans were announced to allocate a minimum of 1,000 plots from Hulhumale’, 2,000 from Gulhifalhu, and another 2,000 from Giraavarufalhu, to address housing needs for Male’ residents.
