Ministry says market redevelopment land can be transferred to state

The Ministry of Housing, Land and Urban Development has stated that the land earmarked for the redevelopment of the Malé Local Market and Fish Market can be transferred to the state despite existing agreements entered into by the Malé City Council.

The statement follows ongoing disagreements between the ministry and the council over the handover of the site for the redevelopment project.

The council has argued that the land cannot be transferred because agreements relating to the project were previously signed with two separate companies during the period when President Mohamed Muizzu served as Mayor of Malé.

According to an audit commissioned by the council, an agreement was signed with Eco International Engineering on 19 August 2022. A second agreement was later signed with Hairu Engineering Consultancy on 9 March 2023.

The audit reportedly found no records indicating that the agreement with Eco International Engineering had been formally terminated, nor documentation showing a council decision authorising the award of the project to a second company.

In a statement issued on Sunday, the Housing Ministry said it had received information indicating that Hairu Engineering Consultancy had written to the council expressing its willingness to terminate the agreement without seeking compensation.

The ministry stated that the company had not undertaken any of the project work outlined in the agreement apart from constructing temporary stalls.

As a result, the ministry said there were no practical obstacles to ending the agreement.

The ministry further argued that there was no legal barrier preventing the land from being transferred to the government, even if the agreement had not yet been formally terminated.

According to the ministry, its position is based on amendments to the Decentralisation Act that permit land to be reassigned for state development projects.

The statement also criticised the council's handling of the matter.

“Even though the law clearly defines these powers and responsibilities, the Malé City Council has completely ignored this Ministry's requests,” the ministry said.

The ministry added that the continued delay in transferring the land had led it to conclude that political considerations were being placed ahead of public interest.

The dispute centres on a redevelopment project for the market area that the government has recently contracted to Maldives Transport and Contracting Company.

The Malé City Council has previously maintained that the land can only be handed over after the legal status of the earlier agreements has been resolved.