Council says market project contract can't proceed until existing agreements end
Last year, Mayor Adam Azim said the development had stalled due to agreements signed with two separate companies.
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The Malé City Council has stated that land for a proposed fish and local market project cannot be handed over until existing agreements related to the site are legally terminated.
The council made the decision during its meeting on Wednesday, concluding that a contract signed by the government with a third party to develop the project cannot proceed while agreements with two other parties remain in effect.
Plans to redevelop the existing local market site into a fish and local market were first initiated during the tenure of President Dr Mohamed Muizzu as Mayor of Malé. The proposal involved constructing a new market before demolishing the existing facility.
However, the project has not progressed. Last year, Mayor Adam Azim said the development had stalled due to agreements signed with two separate companies.
Despite those agreements, the government in March awarded a contract for the project, now named the Malé Wet Market Complex, to Trusteng Maldives Private Limited for MVR 126 million. The project is scheduled for completion within 18 months.
The Ministry of Housing has stated that preparations for the project have been completed and that work has been delayed because the council has not handed over the land.
Speaking at Wednesday's council meeting, Azim said the ministry had requested both the transfer of the land and its registry to the ministry. He said the land falls under the council's jurisdiction and ownership would remain with the council.
According to Azim, the council has informed the ministry that existing agreements linked to the site remain active and must be terminated before the land can be handed over.
He said the council had not been consulted regarding the latest agreement and had not received documentation relating to the project.
The council has requested copies of the agreement, architectural drawings, management plans and documents demonstrating the contractor's ability to carry out the project.
Azim said the council would be prepared to hand over the land once the legal issues surrounding previous agreements are resolved and the requested information is provided.
He outlined a series of events relating to earlier agreements. According to the council, the project was initially awarded following a bidding process. Subsequently, a second agreement was signed with another party that had not participated in the bid.
Azim further stated that the value of one agreement was later increased from USD 6.5 million to approximately USD 9 million without council approval.
He argued that signing a new contract while existing agreements remain in force raises legal concerns.
“We want to build the market right now. We want to start today, but the actions taken by the former mayor have created these complications,” Azim said.
He added that the council had sought meetings with relevant authorities but had not received a response.
The council also stated that a government agency cannot allocate land under council jurisdiction to a third party without consultation and while existing contracts remain active.
As a result, councillors approved a resolution stating that the land will only be handed over after all legal requirements are met and the ministry responds to the council's requests for clarification.
In a letter sent to the ministry, the council said proposals for the project were first opened on 6 March 2022 and that an agreement was signed with Echo Private on 25 March 2022 after it received the highest evaluation score.
The council said that, despite this agreement remaining active, a second agreement was signed with Hive Engineering on 9 March 2023 after the company expressed interest in the project through a letter submitted in January 2023.
According to the council, both agreements must be terminated in accordance with their contractual provisions before the land can be allocated for the project.
The council also reiterated that while land may be handed over for the duration of a government project, ownership of the site remains with the council.
“We stand ready to do whatever is necessary for the citizens. However, we can only operate within the law,” Azim said.
He added that the council must seek legal advice before taking any action that could expose it to compensation claims arising from the termination of existing agreements.
