The Alliance government that takes loans on high interest payments to pay for labor costs in constructing roads in the country is to build a Rs. 1,300 million road in the Maldives.

This asphalt concrete road is 4.8 kilometers in length and the government has agreed to build the road in the Maldives during the 2011 SAARC summit that was held in Male.

The President in his capacity as the Ports and Highways Minister had presented the relevant Cabinet paper on March 22nd. According to the Cabinet paper, the Maldivian government has asked for Sri Lanka’s assistance in November 2011 to build a 4.8 kilometer road that begins from Sunset Bridge and runs across Maradhoo and Fyvhoo on the Addu Island.

Therefore, the Cabinet meeting on September 21, 2011 had agreed to sign the agreement to provide US$ 10 million to the Maldives to build the road.

The construction of the two lane road had been handed over to International Construction Consortium Private Limited without calling for any tenders. After discussing with the company, the Cabinet has approved the release of monies to build the road.