MDP MP seeks answers over Eagle Hills Ras Malé agreement

Galolhu Uthuru MP Mohamed Ibrahim has asked Infrastructure Minister Dr Abdulla Muththalib to clarify the terms of the government's agreement with UAE-based Eagle Hills for the Ras Malé development, including the 99-year lease arrangement, financial returns to the state and the developer's investment commitments.

In a letter to the minister, the opposition Maldivian Democratic Party (MDP) MP sought answers to questions and concerns raised over the commercial terms agreement signed between the government and Eagle Hills last week.

Mohamed asked why the allocation of 500 hectares of Ras Malé land to Eagle Hills for 99 years was not conducted through a public bidding process and why the company was selected for the project.

He also sought clarification on the legal framework governing the 99-year lease and the conditions that would apply when land or property within the development is transferred to another party.

The MP asked whether a transfer would result in a new lease term of up to 99 years, what legal conditions would have to be met for such a term to be granted, whether government approval would be required and whether the state would receive a premium.

He also asked whether successive transfers could repeatedly result in new 99-year lease periods, and under which law the government had decided to allocate a large area of Ras Malé to Eagle Hills for that period.

Eagle Hills currently states that properties within the development will be offered through a leasehold framework of up to 99 years and will be transferable and inheritable, with each transfer subject to government approval and registration.

Mohamed also sought details of the financial benefits the state expects from the project. He questioned why the government considered a long-term allocation of land without a direct upfront payment to be in the state's interest, particularly at a time when the Maldives faces a shortage of US dollars.

He asked the minister to disclose the direct and indirect revenue the state expects to receive under the agreement.

The MP also requested details of the 5,000 housing units that the government has said Eagle Hills will build in Hulhumalé under the arrangement. The housing component has previously been described as a contractor-financed project under which the government would make payments after the units are completed and handed over to the state.

Noting that the document signed so far is a commercial terms agreement, Mohamed asked what financial and development obligations are already legally binding on Eagle Hills and what conditions must be fulfilled before the company can exercise development rights and begin physical work.

The agreement signed on 21 September sets out the shared vision and principal commercial terms for the Maldives Waterfront and Marina development, while more detailed terms are to be developed as the project progresses, according to Eagle Hills.

Mohamed also asked for a timeline showing how the announced USD 20 billion to USD 30 billion in investment would enter the Maldivian economy and how much would be invested during the first one to three years.

He sought clarification on how much foreign currency generated by the project would remain in the Maldives and on projections that the development would create about 54,000 jobs.

The MP further asked whether due diligence had been conducted on Eagle Hills and what provisions would apply if the developer failed to complete the project, including how the land would be returned to the state. He also sought details of the circumstances under which the agreement could be terminated.

Mohamed questioned whether allocating 500 hectares of Ras Malé for high-end commercial and real estate development, while leaving the remaining land for public housing, was consistent with the government's pledge to address housing needs.

He also asked whether the government had assessed any foreign policy, national security or geopolitical implications arising from the project and, if so, called for the findings to be shared with Parliament.

The MP said information about major national projects should be made available to the public. He asked Muththalib whether the government would disclose the key provisions of the Eagle Hills agreement to Parliament and the public, as well as details of its long-term implications.

The government and Eagle Hills signed the commercial terms agreement for the Maldives Waterfront and Marina project on 21 September. Eagle Hills says the development will include hotels and resorts, premium and branded residences, a marina, waterfront promenades, dining, retail, leisure, wellness and other facilities.

The project has faced scrutiny from opposition politicians and other critics, including calls for the agreement to be made public. A constitutional case has also been filed at the Supreme Court challenging the proposed allocation of Ras Malé land to Eagle Hills.