Amidst ongoing uncertainty regarding total expenditure for Ras Male' land reclamation project, Ashraq says costs amount to $700 million

Kinbidhoo MP Ali Ashraq stated that the Ras Male' land reclamation project costs approximately $700 million, adding that it is regrettable for a cabinet member who was present at the project's inception to be unaware of this figure.

Responding to a social media post by former Foreign Minister Abdulla Khaleel regarding the 99-year lease of a significant portion of Ras Male' to Eagle Hills, Ashraq stated that the reclamation of Ras Male' is estimated to cost approximately $700 million. This amounts to 10.7 billion Rufiyaa. He further noted that the government has publicly disclosed this information on numerous occasions.

Khaleel raised critical questions regarding the financial transparency of the Ras Male' project, emphasizing the need to clarify the total state expenditure on land reclamation to date. He further questioned whether a formal valuation has been established for the Ras Male' land and its surrounding lagoon, and if so, what those specific figures are.

In response to MP Ashraq’s remark that it was regrettable for a cabinet member to be so ill-informed, Khaleel countered by stating that no information regarding the Ras Male' project had been shared during his tenure in the cabinet. He questioned whether the project was being conducted with such high levels of secrecy even back then.

Minister of Infrastructure, Housing and Urban Development Dr. Abdulla Muththalib stated in January 2024 that the Ras Male' reclamation project would cost at least $700 million, or 10.7 billion Rufiyaa. The Minister shared this information with the press following a ceremony held to award contracts for surveying the redevelopment of Villimale roads and conducting feasibility studies for land reclamation for the Nilandhoo Airport project.

At the time, Muththalib stated that the government had not concealed any details regarding the Ras Male' project, emphasizing that no state funds were being spent on the initiative. He noted that given the geographical nature of the Fushidhiggaru Lagoon area, land reclamation is an exceptionally costly undertaking, estimating that the work would require an investment of at least $500 million to $700 million. However, those figures were based on estimates available at the time.

Consequently, despite the member's claim that the project would cost 700 million, many observers argue that this figure is no longer accurate. While the target was to complete the Ras Male' land reclamation project within eight months, the work has faced significant delays. As a result, the public is now expressing concerns that the total expenditure for the project will far exceed initial estimates.

The project was initially awarded to Sri Lanka's Capital Marine and Civil Construction Company (CMCC). Under the terms of the agreement, no state funds or financial assistance were to be utilized for the project. Instead, the company was to be granted long-term leases for 10 hectares of land in Hulhumale' and 60 hectares in Ras Male'. However, the agreement was subsequently terminated due to delays and obstacles encountered during the project's implementation.

To further advance this project, Housing Development Corporation (HDC) secured a substantial loan and contracted the reclamation work to several firms, including India's Mohan Mutha Exports (MME), as well as China Railway Construction Corporation (CRCC) and CHEC. Originally managed by HDC, the government has since transferred the project to Maldives Airports Company Limited (MACL) to expedite its completion. MACL officially commenced physical reclamation work on Ras Male' Site A on December 1, 2025.

The Ras Male' project is a flagship initiative under the current administration's housing policy, with development officially commencing on December 18, 2023. To facilitate the project, a total of 1,153 hectares of land is slated to be reclaimed from the Fushidhiggaru Lagoon. According to President Muizzu’s presidential manifesto, the Ras Male' development is set to include 65,000 housing units, comprising both land plots and apartment flats.

The public's primary concern at present is the allocation of a significant portion of Ras Male' to Eagle Hills for a 99-year period. Calls are intensifying for the government to disclose the details of this opaque deal.