FDC receives greenlight for loan to build 5,000 housing units

The Fahi Dhiriulhun Corporation (FDC) has received the greenlight from a Chinese bank for a loan to finance the construction of 5,000 housing units in the greater Male’ area.

The 5,000 units in question are the first of 13,000 housing units the FDC plans on developing in the Maldivian capital.

Hamdhan Shakeel, the managing director of FDC, told Sun on Thursday that a Chinese bank has committed to issuing a loan to finance the project.

“We have received a term sheet which indicates commitment from the bank to lend for the project,” he said.

He did not disclose the name of the bank.

Hamdhan said the term sheet has been forwarded to the Economic Council for review.

He said that the FDC will sign the loan agreement once the Economic Council gives the go-ahead and the corporation signs an Engineering, Procurement and Construction contract with a contractor.

EPC contracts are a type of contract where a contractor is responsible for the entire project lifecycle, from design and engineering to procurement of materials and construction.

In an appearance on Sun’s ‘Editaruge Suvaalu’ show back in January, Hamdhan said the 13,000 units will be developed under “100 percent contractor financing models.”

FDC has signed framework agreements with three foreign companies to develop the units; one with a Turkish company to develop 5,000 units, one with a Chinese company to develop 5,000 units, and one with a Sri Lankan company to develop 3,000 units.