The stalled Rasmale' reclamation project has resumed as the Maldives government aims to tackle the housing shortage through large-scale land reclamation.

President Dr Mohamed Muizzu announced that the project involves reclaiming the Fushidhiggaru falhu to develop additional residential areas. Under the plan, a total of 1,153 hectares of land will be reclaimed across 12 designated zones, with one area, covering 29 hectares, already completed.

Initially awarded to Sri Lanka’s Capital Marine and Civil Construction (CMC), the contract was later terminated to enable the government to proceed without giving land to contractors. The project has since been re-awarded to India’s Mohan Mutha Export (MME) and China Railway Construction Company (CRCC). The Housing Development Corporation (HDC) recently confirmed on social media that reclamation activities have resumed, although specifics were not disclosed.

The Environmental Protection Agency (EPA) recently identified three areas for sand extraction to facilitate the project, granting six months for completion. Additionally, the EPA has approved nine new sites in Rasmale' City, collectively covering 562 hectares. The project continues to progress as the government addresses logistical challenges to provide affordable housing solutions.