Kudoo: Parking systems could’ve generated MVR 83M to date, who will be responsible for the loss?

North Galolhu MP Mohamed Ibrahim (Kudu) has questioned which state institution should be held accountable for the substantial financial loss resulting from the failure to utilize modern mechanical parking systems in Hulhumalé, emphasizing that had the systems been operational since 2019 and each parking space leased at MVR 100 per day, the state could have generated more than MVR 83 million in revenue.

In a formal letter to the Housing Development Corporation (HDC), the lawmaker noted that 10 mechanical parking systems, collectively capable of accommodating 300 vehicles, had been installed at eight locations across Hulhumalé. He argued that the facilities have effectively become a significant waste of public resources, as they have yet to provide any benefit to either the public or the state.

"Statistics indicate that if these 300 parking slots had been leased at a modest rate of MVR 100 per day since 2019, the state would have generated more than MVR 83 million in revenue by now," the letter read.

Kudoo also pointed out that although most of the systems appear to remain in a condition that would allow them to be maintained and restored, one system has already been dismantled, while its components have been left abandoned in an open area.

Based on these concerns, Kudoo called on HDC to clarify the following:

• What measures have been taken to complete the outstanding repairs and make the systems available for public use?
• Which state institution is directly responsible for the "opportunity cost" incurred as a result of the prolonged delay in making these facilities operational?
• Does HDC or any other government institution have plans to reactivate the systems? If so, what is the proposed implementation plan and timeline?

The introduction of mechanical parking systems was first announced in 2015 by President Dr. Mohamed Muizzu, who was serving as Housing Minister at the time, as a measure to address the severe shortage of parking spaces in the Malé area. He stated then that the project would be incorporated into the 2016 state budget and completed by the end of that year.

However, the installation of the systems in Malé and Hulhumalé did not begin until 2018. Although HDC initially projected that the systems would become operational within one to two months, those installed in Malé were never put into use and were subsequently dismantled.

In 2021, during the last administration, HDC attributed the prolonged delay to incomplete work. The Corporation stated that the project, which had been initiated during former President Abdulla Yameen Abdul Gayoom’s administration, remained unfinished because HDC was facing financial difficulties and had not settled outstanding payments owed to the contractor.

Although HDC said at the time that the systems would be brought into operation once payment was made to the contractor, they remain unused under the current administration.

Last month, President Muizzu announced that construction of two parking buildings in Malé would commence this year as part of efforts to ease the capital's parking crisis. The government has also announced plans to construct seven parking buildings in Hulhumalé.

The severity of the parking shortage is further highlighted by a recent study commissioned by the Malé City Council and conducted by the Islamic University of Maldives (IUM). The study found that the estimated vehicle-carrying capacity of the Malé area is 89,413 vehicles. However, when the report was published last year, 119,472 vehicles had been registered in the region—30,059 more than the area's recommended capacity.