The government has formally reassigned a substantial public infrastructure contract to a domestic construction firm, following the termination of an earlier agreement with a foreign company that declined to accommodate locally mandated design revisions.
Ministry of Cities, Local Government and Public Works confirmed that Rasheed Carpentry and Construction (RCC), a local firm, has been conferred the contract to construct 55 council buildings across the country’s dispersed atolls. The project, valued at USD 40.94 million, will proceed under a contractor-financed model. The reassignment follows the rescission of a prior agreement with Malaysian firm Hexter Global, which withdrew from the undertaking after refusing to implement design changes proposed by individual island councils.
The cities ministry has indicated that RCC is expected to commence practical work in September. The ministry has outlined a completion target of approximately 11 months, underscoring the administration’s urgency in delivering essential infrastructure. Each site will include boundary walls and be furnished with office equipment upon finalisation, according to project specifications.
This initiative forms a central component of President Dr Mohamed Muizzu’s broader policy agenda, which prioritises the renewal of ageing council infrastructure and the expansion of administrative capacity across the country. Cities ministry officials have stated that more than 100 council buildings are slated for construction during the current term, reflecting a nationwide commitment to decentralised governance.
Plans for an additional 50 council buildings are also underway, supported by a grant from the Chinese government. That arrangement was formalised in May through the signing of a Letter of Exchange between the two governments, and is expected to complement the RCC-led effort.