Gov’t initiatives thrown into chaos after “reprioritization”, “rationalization”

Minister of Construction and Infrastructure Dr. Abdulla Muththalib has claimed that none of the development projects awarded and mobilized by the Maldives Transport and Contracting Company (MTCC) will be halted.

Minister Muththalib asserted that the government has not decided to slam the brakes on any of the projects awarded to MTCC, which have already commenced physical work.

Despite the minister’s assurance, the Ministry of Construction and Infrastructure has revealed that the government has decided to prioritize the completion of projects that have already kicked off, and suspend the physical commencement of projects that have been signed but are yet to be implemented.

Projects awarded to MTCC - Photo by the Ministry of Construction and Infrastructure

The minister cited the “non-allocation of funds in the budget for 2024, which has been approved adequately for the implementation of projects”, when citing the reason for this decision.

The minister’s comments come at a time the ministry had on 30 July 2024 addressed a letter to MTCC, instructing to halt the projects as part of measures to “increase” the state’s revenue and “reduce” expenditure.

The letter does not clarify that the projects that are instructed to be halted were in fact the projects for which the physical work has not commenced, to date.

Instead, the letter stated that projects to be carried out were identified as part of cost-cutting efforts, under a plan to "reprioritize and rationalize".

Considering the use of the two English terms used in its letter to MTCC by an administration that claims to prioritize “nationality” and the local language, it appears that the ministry has redefined the priority for the projects that have already been awarded.

In conclusion, the letter reads that the ministry instructs to halt the projects listed as ones that are not to be carried out for the time being, until further notice.

While the minister has blamed the lack of adequate funds in the 2024 budget as the reason for the halting of development projects, it is important to note that the government has taken up completely new projects that have not been listed in the approved budget, at all.