The government has cancelled a USD 36 million agreement with Malaysia’s Hexter Global to construct 55 council buildings across various islands, and has begun the process of awarding the project to a local company.

Minister of Cities, Local Government and Public Works Adam Shareef stated that the contract was cancelled after Hexter failed to accept design changes proposed by the councils. He confirmed that no compensation would be paid to the company.

The original agreement, signed on 20 January, included the construction of fully furnished offices, 27 of them two-storey buildings, to be completed within 12 to 18 months of project commencement.

Minister Shareef also announced that in addition to the 55 buildings, a separate Chinese-funded project will construct 50 more council offices starting this year. Combined, the two initiatives will renew 71 percent of council infrastructure in the Maldives.

President Dr Mohamed Muizzu previously pledged at the Republic Day function to begin construction of 100 council offices by 2025, with half funded through a Chinese grant and the rest financed under a government contract arrangement.