Solih: MDP won't support Ras Malé project without disclosure of agreement

Former President Ibrahim Mohamed Solih has said an MDP government would not allow the Ras Malé development with UAE-based Eagle Hills to proceed under what he described as a “secret agreement”, calling on the government to disclose its terms.

Solih made the remarks on Thursday night while speaking at the opening ceremony of the Maldivian Democratic Party (MDP) congress. It was his first public comment on the Eagle Hills project.

The government signed a commercial terms agreement with Eagle Hills on 21 September for the Maldives Waterfront and Marina project, which the government has described as a USD 20 billion development. About 500 hectares of reclaimed land at Ras Malé is to be allocated for the project.

As part of the arrangement, Eagle Hills is also expected to develop 5,000 housing units. Government officials have said the units will be developed under a contractor-financing model, with Eagle Hills initially financing construction and the government making payments after the units are completed and handed over.

Speaking at the MDP congress, Solih said the party was not opposed to foreign investment or to introducing residency programmes under an established legal framework.

“We are hearing that [Ras Malé land] is being given to foreigners for free. We are not opposed to foreign investment. Nor are we opposed to running a residency programme within a proper framework,” Solih said.

However, he said that if such a large area of land was being allocated without an upfront payment, the government should disclose what the State would receive in return and how the public would benefit.

Solih said those issues could only be properly assessed if the agreement was made public. Conducting such arrangements in secrecy was a concern, he said, adding that the MDP should not support projects undertaken on that basis.

He called for the government to disclose details of the agreement, saying the MDP congress should urge the government to cancel the arrangement if it refuses to do so.

“We cannot say yes to anything carried out under a secret agreement,” Solih said. “Nor will we allow such a project to proceed under an MDP government.”

The full terms of the agreement have not been made public. The document signed in September has been described as a commercial terms agreement, with detailed terms to be developed as the project progresses.

The government has rejected claims that the Ras Malé land is being sold to Eagle Hills. Finance Minister Hassan Zareer has said the project involves a lease arrangement and that the land will remain a State-owned asset.

Solih also responded to comparisons between the Eagle Hills arrangement and projects awarded during his administration.

He said a lagoon in Vaavu Atoll allocated during the MDP administration was handed over after USD 43 million was secured as an advance payment. Under the arrangement, he said, reclamation was to be carried out at the foreign developer’s expense and a domestic airport was also to be developed.

Solih said a lagoon in Noonu Atoll was also allocated under the Tourism Act during his administration under an arrangement requiring a USD 19 million advance payment.

He contrasted those arrangements with the current government’s approach, alleging that amendments to the Special Economic Zones framework had resulted in the State foregoing millions of dollars in revenue.