Dutch-based Boskalis, which has been hired for the project, stated that it would cost around MVR 2 billion to reclaim the second phase of Gulhifalhu. However, there is no word on the exact date of commencement of the work. 

Boskalis stated in a statement on Monday that the project awarded by the Planning Ministry is estimated to cost 120 million euros (MVR 2 billion). 

The second phase of the dredging to the construction of a regional port or port built by the government there with this project and all services of the commercial port currently operating on the northern side of the city will be converted into a joint venture. 

Boskalis was awarded the contract to acquire a large part of the city's port without bidding on October 17, 2019. However, work on the project is yet to take off.

The government has also taken a loan of $101 million (MVR 1.6 billion) from three banks to acquire the gullies. These are the European Export Trade Bank, the Netherlands' ABN Emro Bank, and ING Bank.

Boskalis was also the first major mining company in 2010. Boskalis, which has been globally engaged in various types of land reclamation and coastal infrastructure, has previously undertaken various development projects in the Maldives.

In 2019, the company undertook a project to protect the coastal belt of the river. The company has also acquired the area required to connect the Thilamale' Bridge, which is being constructed by the current government.

Boskalis' statement said the EIA, which was to be done before the second phase of mining began, has also been done. Boscalis said it plans to do various things to reduce the environmental damage caused by the project.

According to the firm, the second phase of the lake will add about 18 million cubic meters of sand. Around the excavation site, substantial stone revetments will be built. But it remained unclear how much land would be purchased as part of the project.

While the process of reclamation is set to begin, the state government has also entrusted the civic body to acquire Thilafuth and Girawarfalhu for various projects.