Largest proportion of budget allocated for transport infrastructure development
PSIP’s have received a total of 10.1billion rufiyaa in funding, including 2.7 billion for developing transport infrastructure.
Hulhule\' terminal in Male\'
The proposed state budget for the upcoming year has allocated the largest proportion of the budget to the development of transport infrastructure under its Public Sector Investment Program (PSIP).
In total, PSIP’s have received a total of 10.1billion rufiyaa in funding, including 2.7 billion for developing transport infrastructure. Funding for these projects consists of 1.4 billion from the state budget and 1.3 billion from third-party loans.
The largest portion of funding for transport infrastructure is assigned to airport and harbor development projects.
Likewise, 322.8 million from the state budget and 110.4 million in loans will be spent on establishing new harbors on various islands of the country, including the project relocating Male' Commercial Harbor to Gulhifalhu.
Out of the harbor development projects, 14.6 million has been allocated to the ongoing harbor expansion project at Kulhudhuhfushi that began last year in addition to the funding by the Asian Development Bank. Moreover, 442.5 million has been assigned to 36 more ongoing projects.
Out of the airport development projects, 53.9 million has been assigned to the airport project for Faresmaathoda in Gaafu Dhaalu Atoll for which land reclamation work is ongoing since last year.
Furthermore, an airport is to be established on the island of Muli in Meemu atoll with work scheduled to begin in 2021. This project received 1 million for assessment reports from the 2020 state budget.
Another 852.9 million was for the development project of Velana International Airport including the construction of a terminal and a runway.
Additionally, 50 million and 25.8 million has been given to the airport construction projects in Ha. Hoarafushi and Gdh. Maavarulu, respectively. Currently, land reclamation for the airport has been completed in Hoarafushi.
150 million of the state budget has been set aside for the project to establish a transport network between various islands all around the Maldives as part of the current administration's national development plan.
Presenting the budget, Minister Ameer revealed that this is the first time the ministry has been able to compile a state budget under the government’s manifesto and “Jazeera Raajje” or island nation, vision. The budget is expected to provide an easier lifestyle for the people.
The State Budget 2020 has the biggest Public Sector Investment Programme (PSIP) seen in the country’s history, MVR 10.1 million, which is MVR five million more than the past year. A recurrent expenditure of MVR 22.2 million, and MVR 6.6 million for capital expenditure has also been set under the proposal.
