The Housing Development Corporation (HDC) has contracted the China Machinery Engineering Company (CMEC) to develop trunk infrastructure for the ongoing reclamation of Phase III in Hulhumalé. The contract was signed at a ceremony on Wednesday.

Under the agreement, CMEC will develop critical physical structures, including a pipe-borne water supply, a comprehensive road network, sewerage facilities, and an electricity supply network. The contract also stipulates the establishment of a Gigabit Passive Optical Network (GPON), which will provide advanced communications and internet services.

The Memorandum of Understanding (MoU) between HDC and CMEC is expected to “revolutionise the infrastructure of Hulhumalé Phase III with cutting-edge developments that will enhance connectivity and sustainability,” according to HDC. The road construction work will also incorporate a mechanism to mitigate fire incidents.

The MoU was signed by Ibrahim Fazul Rasheed, Managing Director of HDC, and Qian Haojun, General Manager and Chief Representative of CMEC. The total value of the agreement remains undisclosed.

The reclamation of Phase III in Hulhumalé was initiated by the previous administration. The area is being reclaimed to provide land plots to address the housing crisis in the Malé region. The Ibrahim Mohamed Solih administration also commenced land reclamation of Gulhifalhu with the same intention, while the Mohamed Muizzu administration contracted trunk infrastructure development of Gulhifalhu to CMEC.

CMEC was also contracted for the municipal and trunk infrastructure works of President Muizzu’s Ras Malé project. The reclamation of Fushidhiggaru Falhu for the Ras Malé project is one of the largest housing projects initiated by the Muizzu administration and is heralded as its flagship project.

CMEC, a core subsidiary of China National Machinery Industry Corporation (Sinomach), is among the world’s top 500 companies. Founded in 1978, it is China’s first engineering and trade company.