Parliament has today passed the Public Accounts Committee report granting changes sought by the President to allocation of funds from a MVR 2.5 billion loan from China’s Exim Bank. The changes seek to relocate some of the funds, designated to construct 1,500 housing units in four southern atolls, to construct 704 housing units in Hulhumale'.
Members voted today to pass the Public Accounts Committee report, with 38 votes in favor and 31 votes against.
The MVR 2.5 billion ($158.3 million) loan was taken by former president Mohamed Nasheed in 2011 for the construction of 1,500 housing units in four southern atolls.
In a letter to the parliament earlier this month, President Yameen said the government would like to re-allocate a sum to construct 704 housing units in Hulhumale’.
The previous parliament, in December 2013, rejected a request by President Yameen to review the fund allocations from the Exim Bank loan.
President stressed in his letter to the Parliament that the government should be free to re-allocate funds as required and that the current restrictions hinder the development process. He also said that that government, through a Needs Assessment, has determined the housing requirements in the southern-most atolls and that the government would like to allocate some housing units to Hulhumale’.
The loan from China’s Exim Bank must be repaid within 20 years. From the time of full disbursement of the loan, the government will have to pay 17.74 million Yuan ($2.3 million or MVR35.5 million) yearly as interest during the grace period. The government should have paid $183.14 million (MVR2.8 billion) by 2033, the end of the loan period.