Tuesday 16th Apr 2024
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Fahi dhiriulhun Corporation

FDC Signs MVR 2.5 Billion Contract with KPIL, an Indian Company Debarred by World Bank

MALÉ, MALDIVES — Fahidhiriulhun Corporation (FDC) has signed a contract with Indian company Kalapatar Projects International Limited (KPIL) for the development of 4000 housing units in Hulhumale. The agreement comes with a cloud of concern over the three-year timeline for the initial 2000 units and a history of delays and problems with similar projects in the region.
The total cost of the project is MVR 2.5 billion. As per the agreement with FDC, KPIL will develop the first 2000 housing units within three years. Critics argue that this timeline is overly extensive, particularly when compared to previous projects in the region. Chinese companies previously developed 7000 housing units in Hulhumale in a shorter time frame, raising questions about KPIL's ability to meet the deadlines.
Further concerns stem from KPIL's history, as the company was debarred by the World Bank for engaging in fraudulent practices. At present, JMC, a subsidiary of KPIL, is developing 2000 housing units in Hulhumale, but this project is already significantly behind schedule.
Most Indian projects in the Maldives have faced similar issues, with workers often protesting due to lack of food and a good working environment. This recurring problem is raising questions regarding the wisdom of the Maldives government in awarding the contract to KPIL.
The deal with KPIL highlights a broader issue of the speed of infrastructure development in the Maldives and raises significant doubts about whether this new project will be an exception to the general pattern of delays and difficulties.