Gov’t Seeks New Contractor to Revive Stalled Kulhudhuffushi Housing Project

The government is seeking a new contractor to restart the stalled 400 housing units project in Kulhudhuffushi City, according to the Minister of Construction, Housing and Infrastructure, Dr Abdulla Muththalib.

The previous administration awarded the contract in 2022 to a joint venture between Donbez Private Limited and the 23rd Metallurgical Construction Group Co. Limited. The agreement required the completion of the project within 540 days at a cost of USD 29 million.

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The project involves the construction of five apartment blocks with a total of 400 housing units, each measuring 1,000 square feet. The ground floors of these buildings were intended for commercial use, while the surrounding area was planned to include a courtyard and parking facilities.

Although work commenced in 2023, the project experienced significant delays before coming to a complete halt. Speaking on the national radio programme “Ahaashey Bunaan” on Dhivehi Rajjeyge Adu, Dr Muththalib explained that the government had provided mobilisation funds to the contractor, but work nonetheless stopped due to the contractor’s failure to proceed.

The Minister confirmed that the government has now issued a notice to terminate the existing contract and will appoint a new contractor to recommence the project.

Dr Muththalib also stated that contractors are being sought for an additional 2,000 housing units announced by the current administration. Proposals from interested parties have been received and are under review, with work expected to begin soon.

Kulhudhuffushi is the most populous island in the north of the Maldives, with more than 10,000 residents.