Govt cancels Kelaa resort tender for new bid with concessions
The Tourism Ministry has stated that the tender for the Kelaa lagoon will be reannounced under the new framework.
The Ministry of Tourism has cancelled the open tender for the development of two resorts in the lagoon of HA. Kelaa, with plans to reannounce the opportunity under a revised scheme that includes concessions for tourism development in atolls with fewer existing resorts.
The decision follows a presidential resolution issued in March allocating 325.5 hectares in the Kelaa lagoon for resort development. The initial tender was opened on 31 March for two parcels:
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A 156.2-hectare lagoon, requiring 12.19 hectares to be dredged for the development of a 200-bed resort. A minimum lease acquisition fee of USD 1.99 million was to be paid within two months of receiving the letter of award for a 50-year lease.
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A 169.3-hectare lagoon, also requiring 12.19 hectares of dredging for another 200-bed resort. The minimum lease acquisition fee was USD 2.03 million, to be paid under the same terms.
The ministry has now withdrawn this tender, citing the government’s decision to provide investor concessions for projects located in underdeveloped atolls, including Haa Alif Atoll.
Under the revised terms, new tenders will be issued in line with the Rules on Submission of Proposals for Lease of Island, Land and Lagoon for Tourism Purposes and the Rules on Lease of Islands, Land or Lagoons for Tourism Purposes. Concessions to be offered include:
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A reduced rate for calculating lease acquisition fees
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Deferral of land rent for the remaining grace period if development and operations begin before the grace period ends
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Increased duty exemption on imported items for resort development, including furniture, kitchen equipment, electronics, and other amenities
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Option for split payment of the lease acquisition fee
Further, for properties developed under a halal tourism concept in these atolls, the government will allow:
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Deferred lease acquisition payments in the first quarter of the fifth and sixth years within the development period
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An additional 20% reduction in lease acquisition cost
The Tourism Ministry has stated that the tender for the Kelaa lagoon will be reannounced under the new framework.
