Infrastructure Minister Reveals MVR 36.8 Billion PSIP Projects Amid Limited Budget
Minister of Construction and Infrastructure Dr Abdulla Muththalib has disclosed that the total value of Public Sector Investment Program (PSIP) projects signed for this year surpasses MVR 36.8 billion, even though the budget allocation for these projects is less than MVR 5 billion.
He made this statement in response to questions during a parliamentary session this morning. Dr. Muthalib explained that the value of ongoing projects currently amounts to MVR 31.5 billion. However, due to the limited budget, the government is compelled to prioritise certain projects. He urged parliamentarians to ensure that adequate funds are allocated in the budget to allow for the continuation of planned projects.
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His remarks caused dissatisfaction among some parliamentarians, including South Hithadhoo MP Ibrahim Nazil, the parliamentary group leader for the main opposition Maldivian Democratic Party (MDP).
Nazil argued that annual budgets are prepared by government officials and criticised the government for not submitting accurate budget figures. He emphasised that the budget is reviewed by the President’s Office before being sent to Parliament and suggested that the government should take responsibility for the figures it submits, rather than placing blame elsewhere.
The MDP has frequently accused the government of halting projects initiated by the previous administration. However, the government has defended its actions, stating that the suspension of some projects is due to a lack of funds in the budget.
Gov’t Reassigns Island Infrastructure Projects from FENAKA to MWSC
In a related announcement, Dr. Muthalib revealed the government’s decision to cancel all contracts awarded to FENAKA Corporation for infrastructure development projects on various islands. These contracts will now be reassigned to the Male’ Water and Sewerage Company (MWSC) through direct negotiations.
Dr. Muthalib explained that FENAKA does not have the necessary capacity to develop water and sewerage systems on islands, as its primary role is that of a service provider. As a result, the government decided to terminate all infrastructure contracts with Fenaka and to contract the work to MWSC instead.
He also informed Parliament that infrastructure projects on 20 islands, which were previously managed by FENAKA, will now be handled by MWSC. The government aims to have new contracts signed before the end of the month.
Dr. Muthalib reassured Parliament that the government remains committed to establishing essential services, including water and sewerage systems, and will not halt or suspend any related projects. He stated that the government will begin these projects as soon as possible to ensure that services are provided to the public.
Last month, during a visit to the Parliament, Dr. Muthalib noted that the government is collaborating with other relevant authorities to prioritise projects, given the financial constraints faced this year.
