President Announces State-Funded Mental Health Hospital After Loan Delays
Aerial photograph of Malé | Photo: MV+
President Dr Mohamed Muizzu has said the government has decided to fund the development of a mental health hospital in the Maldives using state funds, citing difficulties in securing a foreign loan for the project as originally planned.
Speaking at a press conference held at the President’s Office today, he said the development of a mental health hospital was part of his pledge. He said the initial plan was to finance the project through a foreign loan, but delays in securing funding had affected progress.
“However, because the procedure is long, this project and any other similar project like it are getting delayed, and as this problem is escalating in the Maldives to the point where we need additional help, we have discussed and decided to develop the mental health hospital from state funding,” he said.
He added that the decision to use state funds does not rule out the possibility of proceeding with a loan-funded arrangement in the future, noting that a final decision has yet to be made.
The President said the original loan-funded plan had proposed constructing the hospital in Laamu Atoll, with an estimated cost of around USD 18 million on a 14,000-square-foot site. He said that plan would continue for now, but the government has decided to relocate the mental health hospital to the Greater Malé Area.
He said the decision reflects higher population density in the capital region and greater access to mental health services in the area.
He also provided data from consultations between 1 January and 24 April, stating that Malé accounted for 8,125 of a total 10,954 patients who accessed mental health services during the period since Aasandha, Maldives’ state-funded insurance provider, started covering mental health services from January 1, 2026 onwards.
The President said that a significant proportion of mental health service usage comes from the Malé area, where residents also travel for a wide range of services. He said the government has allocated funds within the state budget to establish the hospital in Malé, and added that the project will proceed through the existing bidding and procurement process.
