RCC contracted to build 55 island council buildings

Rasheed Carpentry and Construction (RCC) has been awarded the contract to construct new council office buildings on 55 islands across the Maldives, under a contractor-financed agreement signed with the Ministry of Local Government.

The agreement was signed at a ceremony held at the ministry yesterday. The agreement was Local Government Ministry Executive Director Hamid Yoosuf and RCC Managing Director Ibrahim Rasheed.

According to ministry officials, the project will begin later this month and is expected to be completed within one year. In addition to constructing the buildings, RCC will also handle the procurement of furniture and fencing for each council office.

Local Government Minister Adam Shareef told Mihaaru News that the agreement with RCC is valued at MVR 631 million. As the project is carried out under contractor financing, the government will make the payment over a five-year period once the buildings are completed.

This means that each building will cost about MVR 11.5 million.

“These structures will be completed with air conditioning and fitted furniture, and the project value covers these aspects,” he said.

He said the ministry had sought proposals from four companies; two local and two foreign for the construction of new council buildings in 55 islands. RCC submitted the lowest bid, he said.

“The proposals were taken to the Economic Council, which made the decision after consultation. The agreement was finalized after the council approved the lowest price,” Shareef said.

Of the 55 buildings, 39 are planned as two-storey structures, as previously announced by the ministry.

This is the second attempt to implement the project. It was initially awarded to Malaysia’s Hexter Global in January. However, the contract was terminated five months later after the company refused to accept changes proposed by local councils. At the time, Minister of Local Government Adam Shareef stated that no compensation would be paid to Hexter Global for the contract cancellation.

In addition to this project, 50 more island council offices are planned to be built under a separate agreement with the Chinese government, following a Letter of Exchange signed in May.