The Ministry of Finance has announced the signing of 206 development projects valued at MVR 2.7 billion, awarded to 53 local private contractors. The agreements, signed at a ceremony held at Barceló Nasandhura in Malé, fall under the government’s Public Sector Investment Programme (PSIP) and are structured on a contractor-finance basis.
According to the Ministry, the projects aim to strengthen essential services and infrastructure across multiple islands while encouraging greater private sector participation in national development. The projects span a range of sectors, including housing, education, health, environment, sports, religious affairs, fisheries, homeland security, and youth empowerment.
Housing and urban development projects account for the largest share, valued at MVR 997 million, followed by education projects worth MVR 511 million and health-related initiatives valued at MVR 312 million. Other allocations include MVR 204 million for environmental projects, MVR 197 million for sports, MVR 196 million for religious affairs, MVR 132 million for fisheries, MVR 115 million for homeland security, and MVR 40 million for youth empowerment.
The Finance Ministry stated that all projects would be implemented under approved PSIP contracts, with payments to be made based on verified progress.
However, the decision to award the projects without a public bidding process has drawn criticism from former government officials and opposition figures, raising concerns over transparency and potential fiscal risks.
Former Tender Board Chairperson Ismail Zariyand alleged that the government’s move violated fiscal regulations and allowed projects to be distributed without competitive bidding. He argued that amendments made to Section 10.22 of the Public Finance Rules since President Mohamed Muizzu took office had enabled the cabinet to directly allocate projects, bypassing standard procurement procedures.
Under the revised framework, companies are not required to provide a project guarantee, while those awarded contracts reportedly receive an advance payment of 15 percent of the total project value. Although the government has described the projects as contractor-financed, critics claim that financing has been arranged through the Bank of Maldives (BML) at a nine percent interest rate, with the state ultimately liable if companies default.
Zariyand also raised concerns about the financial and operational capacity of some of the companies selected, noting that a few were inactive or not registered as contractors under the Ministry of Housing.
Former Finance Minister Ibrahim Ameer also voiced concern, describing the process as contrary to established fiscal rules. Speaking in his capacity as chair of the Maldivian Democratic Party’s Economic Committee, Ameer said the amendment allowing projects to be awarded without open bidding facilitated the misuse of public resources.
He argued that the practice exposed BML to unnecessary financial risk and questioned the feasibility of completing many of the projects within the next two years due to limited funding. Ameer said the opposition would review the legality and implementation of all projects awarded under the new system if it returns to government.
The Finance Ministry has maintained that the new framework encourages private investment and accelerates development across the islands. However, ongoing scrutiny over procurement procedures and fiscal transparency has placed the government’s latest round of project awards under significant public and political attention.
