MDP responds to government after Geela claims MVR 60 million loss due to suspension of 16 projects initiated by previous administration

The Maldivian Democratic Party (MDP) has issued a sharp rebuke to the current administration, asserting that the government must take full responsibility for the damages resulting from its decision to halt 16 projects initiated during the MDP’s tenure. The opposition party further characterized the current administration as "incompetent" in its handling of these matters.

Speaking at Monday's parliamentary sitting regarding the delays and decline within the healthcare system, Minister of Health, Family and Welfare Geela Ali stated that the current administration has canceled 16 healthcare projects initiated by the previous government.

These projects were initiated during the MDP administration, with the necessary funding already disbursed. However, Geela stated that the decision to cancel them was made because no physical progress had been achieved despite the significant passage of time. Geela further noted that although approximately MVR 60 million had been released as advance payments for these 16 projects, the decision to terminate them was driven by the increasing negative impact on the healthcare sector caused by the prolonged stagnation of the work.

In response, the Maldivian Democratic Party (MDP) issued a press statement asserting that 16 projects awarded during its administration were halted under the direct instructions of the current government's Ministry of Health. According to the MDP, these stalled initiatives include hospital projects in HA. Ihavandhoo, HA. Kelaa, and Sh. Funadhoo, as well as health center projects in Sh. Kanditheemu, R. Inguraidhoo, F. Feeali, N. Foddhoo, and N. Kudafari.

The statement noted that these projects were halted and the agreements terminated while work was ongoing at various stages. It further highlighted that even as work progressed on many of these projects, the current administration failed to settle the invoices submitted by contractors for the work already completed.

The Maldivian Democratic Party (MDP) highlighted that the current administration terminated the agreements for hospital projects in K. Thulusdhoo, N. Velidhoo, and Sh. Milandhoo on March 11, 2025—projects originally initiated during the MDP government with assistance from the Kuwait Fund. The party noted that the construction of these three hospitals had been awarded to an Indian company. The party further stated that the Indian contractor has now submitted a claim to the government seeking over MVR 70 million in compensation for damages resulting from the termination of these projects.

Furthermore, the MDP stated that the current administration has also halted the construction of the Laamu Gan Tertiary Hospital and Gadhdhoo Hospital. These projects had been awarded to MTCC under a contractor financing model, supported by the Exim Bank of Spain.

In the statement, the MDP noted that the previous administration had secured $50 million from the Saudi Fund for Development to construct hospitals in AA. Rasdhoo, N. Manadhoo, and Gnaviyani Fuvahmulah. However, the party alleged that the current government has diverted projects earmarked for two of these islands, relocating the Rasdhoo hospital project to F. Nilandhoo and the Manadhoo project to L. Fonadhoo.

The party stated that these projects have now been re-awarded to state-owned enterprises and various private companies at significantly higher costs than those initially contracted under the MDP administration. Furthermore, the party emphasized that the MDP government had awarded these projects only after completing all necessary regulatory procedures through the Ministry of Finance and the National Tender Board.

The MDP stated that it believes the current "incompetent" administration must take full responsibility for the damages resulting from the termination of these project agreements.