The Housing Development Corporation has formalised the reassignment of a long-stalled residential development in Kulhudhuffushi City to Rainbow Construction Private Limited, a strategic intervention designed to mobilise physical works for 400 housing flats. The corporation confirmed that the requisite logistical infrastructure and construction materials have been successfully transported to the site in Haa Dhaalu Atoll, where final technical preparations are underway to facilitate a transition into the active development phase.
This corrective measure addresses a protracted period of inactivity that has persisted since the project’s inception in May 2024. The original architectural scope, comprising five 11-storey towers, achieved a mere 18 percent completion rate before work ceased; progress remains strictly confined to foundational structural works and the partial erection of columns.
The project’s stagnation is a legacy of an agreement ratified in 2023 under the preceding administration, which had mandated a completion deadline of November 2024. At that juncture, the contractual obligation was held by a joint venture between Donbez Private Limited and the Twenty-Third Metallurgical Construction Group Co. Limited.
In 2025, Minister of Construction, Housing and Infrastructure Dr Abdulla Muththalib clarified that while the government had disbursed the necessary mobilisation capital, the contractor failed to sustain momentum and subsequently vacated the site. Minister Muththalib noted that the search for a more capable alternative was necessitated by the need to rectify these standing delays.
The revitalised undertaking, comprised exclusively of three-bedroom residential flats, involves an estimated expenditure exceeding USD 28.80 million. This investment is underpinned by acute demographic pressures within Kulhudhuffushi City, where the population has transcended the 10,000-resident threshold.
President Dr Mohamed Muizzu has declared that the government is committed to developing an additional 2,000 housing flats in the city to bolster regional capacity, aligning the urban framework with an overarching agenda for economic decentralisation and long-term social stability.