Hulhumalé Phase III Housing Project Eases Rules to Boost Local Contractors

The government has revised the contractor framework for the 1,000-unit affordable housing project in Hulhumalé Phase III, introducing significant concessions aimed at encouraging wider participation from local companies. The updated policies, published in the Government Gazette, relax several key financial and operational requirements. A major change replaces the previous mandate for contractors to submit proof of funds covering the full project cost. Instead, companies can now provide a letter of comfort from a financial institution indicating the total project value. Additional concessions include exemptions on import duties for project-related construction materials. The new framework also introduces changes to buyer insurance requirements and provides greater flexibility for joint venture arrangements. To distribute the work, the housing project will be divided into five packages of 200 units each. Under the revised rules, a single company may now be awarded up to 400 units. Eligibility is restricted to fully Maldivian-owned entities, with all projects to be executed on a design-and-build basis. The government states the initiative aims to strengthen local private sector involvement while supporting business growth and capacity development. The housing units will consist of two-bedroom and three-bedroom flats. Price caps have been set at USD 149,000 for three-bedroom units and USD 116,700 for two-bedroom units. In response to the policy revisions, the deadline for the submission of proposals has been extended from March 23 to March 31.