Officials from China and the Maldives laid foundation Sunday for a housing program aimed at accommodating residents moving from surrounded small environment vulnerable islands.

Under the US$2.7 million program, 86 houses will be built in Funadhoo Island, which is about 200 kilometers north of Maldives' Capital, Male.

The harbor of Funadhoo was partly damaged in last year's tsunami, but officials said the small islands near Funadhoo are more vulnerable to natural disasters like tsunami.

The program is totally financed by the Red Cross Society of China and China Charity Federation.

Guo Changjiang, vice president and secretary-general of the Red Cross Society of China, said in the ground breaking ceremony that the Chinese people have deep concern over the Maldivian people suffered from last year's tsunami.

Guo said he was happy to see the fund donated by the Chinese public would contribute to the tsunami rebuilding program in the Maldives.

Mohamed Saeed, Maldivian transport and communication minister, on behalf the Maldivian government, expressed his "heart-felt thanks" to the Red Cross Society of China, China Charity Federation and the Chinese public for their generous donation.

Saeed said the program would promote the already existed good relations between the two countries.

According to Zhang Yaozheng, representative from the program contractor Sinohydro Corporation, the program would be completed by the end of 2006.

Funadhoo is the capital of Shaviyani Atoll with an area of 87 hectares and a population of about 1,600.

(Xinhua News Agency December 19, 2005)