The Government is taking steps to terminate the dredging contract for Giraavaru Falhu due to lack of progress, Minister of Construction, Housing, and Infrastructure Dr Abdulla Muththalib revealed during the sixth Ahaa Forum.

Addressing a question on land handovers, the Minister said the Government is committed to allocating plots to rightful beneficiaries swiftly. However, dredging delays at both Giraavaru Falhu and Hulhumalé Phase Three have hampered the process.

Minister Dr Muththalib disclosed that when the current Administration took office, the previous government had already paid USD 20 million in advance to the contractor. An additional USD 15 million was later disbursed at the contractor’s request for extra work.

Despite these payments, he noted that the actual contract value remained at USD 20 million, raising concerns about the contractor’s unwillingness to continue the project after receiving USD 35 million.

The dredging contract was signed between the contractor and the Maldives Fund Management Corporation (MFMC). The Government is now seeking to cancel the agreement through the Attorney General’s Office due to the contractor’s non-performance.

The Minister also announced that a new land use plan for Giraavaru Falhu is being developed, as some previously designated land has been reallocated to Gulhifalhu. Once finalised, affected individuals will be consulted, and plots allocated via a draw.

Minister Dr Muththalib confirmed that over 60 hectares of land have already been reclaimed from Giraavaru Falhu. Following the draw, a registry will be established, and plots distributed to eligible recipients from the dredged area.