Housing Development Corporation (HDC) has annulled their contract with Belgian company Dredging International for the second phase of Hulhumale’ reclamation and has commissioned another Belgian company, Jan De Nul Group for the project.
In a statement today, HDC said that Dredging International was unable to secure the finances within the required time and thus, the project had to be handed over to the company that achieved second most points in the bidding.
“Housing Development Corporation is now awaiting acknowledgement from the company,” the company stated.
HDC stated early in September that surveys of Thilafushi and Gulhifalhu lagoons had revealed that the areas did not have enough sand to carry out the Hulhumale' second phase reclamation project.
Even after the agreed date to sign the reclamation contract with Dredging International had passed, HDC maintained that they will not sign an agreement with Dredging International before the surveys to secure sand is conclude.
Dredging International agreed to complete reclamation of the total planned area of 240 hectares within 8 months and finish construction of breakwaters within 1 year of commencement of the project, for a total sum of $59 million.