Minister of Construction Dr Abdulla Muthalib has raised concerns over the misuse of advance payments by contractors, which has stalled several development projects across the Maldives. Addressing parliament on Wednesday, the minister detailed the challenges facing his ministry in managing ongoing projects.
Dr Muthalib explained that some contractors take advance payments but fail to deliver on their commitments, often abandoning projects or delaying them significantly. “In some cases, contractors use advance payments to fund unrelated business activities instead of progressing the projects they were awarded. This practice has resulted in significant financial losses for the state,” he said.
The minister also criticised frequent changes to project plans after work has commenced, which he described as a major factor behind delays and cost overruns. He urged local councils to adhere to the original project agreements to avoid unnecessary disruptions.
“Variations introduced during the implementation phase lead to financial losses and make it impossible to complete projects within the allocated budget. Allowing projects to proceed as initially agreed upon would facilitate their timely and efficient completion,” Dr Muthalib stated.
To address these issues, the minister called for stricter oversight of contractors and better management of project variations. He emphasised that improving these practices is essential to ensuring the success of development initiatives across the islands.
The remarks highlight the need for increased accountability and streamlined processes to advance infrastructure projects in the Maldives without unnecessary delays or financial losses.
