Housing Development Corporation (HDC) has stated there are no issues in acquiring the finances required for its planned projects.
Speaking to PSM News, Managing Director of HDC Suhail Ahmed denied claims that the company is planning its future projects without a secure financial plan. He said there are no issues in acquiring the finances required for the projects in its pipeline, noting the company is financially stable.
The managing director noted the claims on HDC’s financial situation were likely triggered by the state audit report which noted HDC could face major financial problems if the loan taken for the Hiya housing project is not properly managed. He noted with the end of the grace period provided for recipients of Hiya flats and the beginning of the collection of the monthly installments for the flats this month, the company can now manage its debt.
The report by the Auditor General’s Office revealed the reduction of the Hiya monthly installment to USD550 would create a cash flow deficit of USD8.9 million for HDC throughout the duration of the project. The report added if the installment is further reduced to USD427, the cash flow deficit would increase to USD595 million.
HDC has planned several development projects for the coming years, most notably the Thilafushi Reclamation Project. The project involves dredging, reclamation and shore protection of a 160-hectare area which is to be allocated as Thilafushi Phase II. The area will be distributed into six different zones, including zones for major and minor industrial works, as well as an area for the development of a liquified natural gas plant. Furthermore, zones will be allocated for mixed-offices and small businesses.