In the proposed state budget for 2023, the Maldives government has allocated 204 projects under the Public Sector Investment Programme (PSIP).
A budget of around $545 million has been set aside for the PSIP next year, a program that strives to achieve the government’s pledges and economic development goals. In 2023, the government intends to continue the present PSIP projects and initiate those that could not be funded in the current fiscal year.
The Ministry of Finance announced that large initiatives are scheduled for next year. As such, the PSIP is given 19.7% of the planned state budget of USD 2.8 billion. The PSIP budget of USD 545 million is comprised of USD 201 million from the national budget, USD 266 million from foreign loans, USD 46 million from international grants, and USD 29 million from the Green Fund.
In addition, 204 new PSIP projects will begin next year at a cost of USD 31 million, along with 311 projects in the tendering phase valued at USD 34 million and 479 projects in the pre-tendering phase valued at USD 78 million. Also included are 113 completed projects with retention funding totaling USD 5 million.
The 2023 PSIP budget allocates the most funds to transportation, USD 156 million or 28.9% of the total budget. Around USD 51 million will be provided for the Thilamale’ Bridge project, USD 60 million for the development of airports in the atolls, and USD 30 million for harbour development.
Approximately USD 91 million or 17.3% of the PSIP budget has been allocated for land reclamation, with USD 18.9 million in loans allocated for the second phase of the Gulhifalhu land reclamation project and USD 11 million of the Indian line-of-credit facility allocated for land reclamation in Addu City. In addition, the budget allocates USD 27 million for contractual road development projects and USD 1.5 million for the initiation of new road development projects.
In addition, the government has earmarked USD 48 million for housing projects and USD 47 million for health sector infrastructure development. Approximately USD 84 million has been designated for environmental protection projects, of which USD 41 million has been designated for waste management and USD 27 million for coastal protection. In addition, the PSIP budget includes USD 42 million for water and sewerage projects in 158 islands in 2023. The government has pledged that no island will lack water supply and sewage services in the coming year.