RCC awarded project to build council offices in 55 islands after original contract scrapped

Rasheed Carpentry and Construction (RCC) was awarded a mega government contract to build office complexes for the local councils of 55 islands on Saturday, after the original contract for the project – awarded to a Malaysian company back in January – was terminated last month.

The project was originally awarded to Malaysian construction company Hextar Global on January 6. But the contract was terminated six months later, on July 6.

The Local Government Ministry awarded the project to a new contractor, Maldivian construction company RCC, on Saturday.

According to the Local Government Ministry, the project was awarded under the contractor financing model.

RCC is required to begin construction work this August, and finish building the 55 council office complexes and provide furnishing within one year.

Local Government Minister Adam Shareef Umar said back in July that the government decided to cancel the original contract because Hextar refused to accommodate changes asked for by local councils.

He also said that the government is not required to compensate Hextar, as the contract was terminated before the company began practical works on the project.

The Local Government Ministry has not disclosed the value of the contract, either the original or the new one awarded to RCC, a family business founded by Abdul Rasheed, the father of Colonel (Retired) Mohamed Nazim, an incumbent parliamentarian and leader of Maldives National Party (MNP).

The project to develop 55 council office complexes is part of an initiative launched by President Dr. Mohamed Muizzu’s administration to address concern over the rundown state of some of the office buildings currently used by local councils.