Govt takes over Kulhudhuffushi industrial zone for seaport expansion

The government has decided to remove the industrial zone in HDh. Kulhudhuffushi from the jurisdiction of the island's council and bring the land under central government control for the expansion of Kulhudhuffushi Seaport.

The Ministry of Housing announced the decision on Thursday, stating that the land was required for the planned expansion of the port.

According to the ministry, the area to be transferred includes land leased to State Trading Organisation (STO) for the operation of its Northern Distribution Centre, as well as land leased to private company Handy Holdings for the establishment of a cold storage facility.

The ministry has invited individuals and organisations wishing to submit comments or objections to the decision to do so in writing within 14 days of the announcement.

The ministry said the decision was made under powers granted by the Decentralisation Act to acquire land required for government development projects.

According to the ministry, the Kulhudhuffushi Seaport expansion project will involve extending the quay wall of the existing multipurpose port, which handles containers and general cargo.

The harbour will also be deepened to accommodate larger vessels and increase the port's cargo-handling capacity.

The government plans to develop the port into a distribution centre for containers transported through feeder services, allowing cargo to be distributed to other areas.

The expanded facility will also provide free zone services, warehousing and bonded warehousing facilities.

The ministry said acquiring land from the industrial zone was necessary to implement the proposed expansion.

The decision follows amendments to land legislation allowing the government to acquire land for state development projects.

Under the amended law, when land falls within a council's jurisdiction, the government is required to share the project's details and supporting documents with the council, consult the council and seek public opinion before proceeding.

The proposed acquisition in Kulhudhuffushi marks the second instance in which the government has moved to take land from a council controlled by the opposition Maldivian Democratic Party (MDP) under the amended legislation.

The government recently transferred 14 plots of land previously under the jurisdiction of Malé City Council to central government control.

Malé City Council, which has an MDP majority, has initiated legal proceedings seeking to stop the transfer.

The council has argued that the government is required to provide project details and supporting documentation before acquiring land under its jurisdiction.

It has alleged that the government proceeded with the transfer without sharing the required documents.

The council has also accused the government of using the land acquisition process to reduce the powers of local councils and obstruct services provided to residents.