Government Now Estimates Rasfari Reclamation Will Cost US$330 Million, Says Housing Minister

The Maldivian government now estimates that the total cost of the land reclamation project in Rasfari will be US$330 million (approximately MVR 5.1 billion), according to Housing Minister Abdullah Muthalib. This is significantly lower than the US$500-700 million estimate previously mentioned when the project began three years ago. Speaking at the "Aha" forum, Minister Muthalib explained that the initial higher estimate was based on costs of projects run by the previous government and market rates at the time, including factors like 'show protection'. He said that by chartering dredgers and carrying out the work through government companies, expenses have been substantially reduced. Muthalib stated that the current estimate of US$330 million will reclaim 1,090 hectares of Rasfari. For a portion of 500 hectares, the cost is approximately US$160 million. He also noted that most of the expenditure has been in Maldivian Rufiyaa to avoid additional impact from dollar shortages, and dismissed what he called scare stories about costs of US$700 million or US$1 billion being spread for political purposes. The revelation of the current expenditure comes amid criticism over the government’s decision to hand over a large area reclaimed at great expense to Eagle Hills of the UAE. When asked earlier about the project's cost, Muthalib had stated he did not know because the work was being done by government companies.