Completing the reclamation of the entire Rasmalé development is expected to cost the government approximately $330 million, Minister of Construction, Housing and Infrastructure Dr. Abdulla Muththalib has said.
Speaking at the Ministers’ Question Forum tonight, Muththalib said the estimated cost of reclaiming all 1,009 hectares of Rasmalé had been significantly reduced through efforts to minimise project expenses.
Rasmalé is one of the government’s flagship projects aimed at addressing the Maldives’ long-standing housing shortage. The project was officially launched on December 18, 2023.
The reclamation work is currently being carried out using Cristóbal Colón, one of the world’s largest trailing suction hopper dredgers. The vessel was brought to the Maldives to accelerate the reclamation process, reportedly increasing the pace of work threefold.
Muththalib explained that when the project was initially launched, the estimated cost stood between $500 million and $700 million. However, those estimates were based on the costs of similar projects being undertaken at the time, prevailing market rates and the inclusion of shore protection works.
He said the government subsequently worked with various state-owned companies to reduce expenses, bringing the projected cost of reclaiming the entire 1,009 hectares to approximately $330 million.
The minister added that completing the reclamation by the end of this year remains the government’s target.
“That means the estimated amount the government will spend to reclaim all 1,009 hectares of Rasmalé is $330 million. If we look at 500 hectares, that would be around $160 million,” Muththalib said.
He maintained that the revised estimate represents a reasonable cost compared with reclamation expenses in the Maldives.
The minister also dismissed claims that the project would cost $700 million or even $1 billion, describing such figures as politically motivated statements intended to create fear among the public.
Muththalib further noted that a substantial portion of the estimated $330 million would be spent in Maldivian rufiyaa, reducing the project’s exposure to fluctuations in the US dollar exchange rate.
He stressed that the government had not simply awarded the reclamation project to a single contractor. Instead, various state-owned companies had been involved in carrying out the work with the objective of keeping costs as low as possible.
Once completed, Rasmalé is expected to provide approximately three times the land area of Hulhumalé Phase 1 and Phase 2 combined. The government estimates that the reclaimed area could accommodate around 65,000 housing units, including plots and apartments.
Meanwhile, Eagle Hills has signed a commercial terms agreement to develop 500 hectares of Rasmalé.
