Lagoon, island in Noonu atoll leased for $27m to finance city development in Male region
"It was a matter of discussion. Discussion is in law, not attaining consent. We discussed," said a tourism ministry official.
By
Ahmed Naif
The government has raised financing to reclaim and develop a residential city in K. Giraavaru lagoon by selling a lagoon and island in the northern Noonu atoll to a foreign company for $27 million (MVR 416 million).
President Ibrahim Mohamed Solih issued a decree issued on December 16, declaring the project to be a cross-subsidised project to build a residential city there. Under the project:
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The minimum cost to be financed is set at $5 million (MVR 77 million)
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Plans to give 2,000 plots to Male residents by reclaiming the lagoon area
A senior government official told Atoll Times on Sunday that the government has signed an agreement with a Swiss company to lease Dhigufaru lagoon and Dhekennafaru island in Noonu atoll for 99 years to raise funds for the Giraavaru lagoon project. The government has also received a part of the dues under the agreement, he said.
Under the agreement:
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The government will receive a total of $27 million
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Of this, $6 million has already been received; the rest will be paid in two months
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The actual price at which the island was sold was $22 million
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The company has agreed to pay an additional $5 million to extend the lease to 99 years
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There was no official word on which Swiss company it was, he said, adding that tourism ministry would announce it later.
Without the say of [Noonu atoll residents], they can't sell assets in the atoll. This is being carried out illegally. We'll stop it.
The government had amended the cross-subsidy list on December 25 to allow those who fund projects or such projects to be compensated without going for bidding. This came nine days after the president declared the Giraavaru project as a cross-subsidy project.
According to the official, the government has handed over the project to the state-owned Maldives Fund Management Corporation (MFMC). He also said that the proceeds from the sale of the lagoon and island of Noonu atoll will be handed over to MFMC to carry out the project.
We will stop this: Noonu atoll President
President of Noonu atoll council Mohamed Basheer said that there are already 1,300 families in need of housing in Noonu atoll. He holds that it is illegal to sell islands and lagoons in the atoll without providing the people a solution and if the decision is not benefiting the people of the atoll. So, they are planning to approach the court to stop it, he said.
"Without the say of [Noonu atoll residents], they can't sell assets in the atoll. This is being carried out illegally. We'll stop it," Basheer said.
According to the tourism ministry, an online discussion meeting was held with the atoll council when a lagoon and island were identified as cross-subsidies. Basheer had attended the meeting halfway and expressed his displeasure, the tourism ministry said.
"It was a matter of discussion. Discussion is in law, not attaining consent. We discussed," said a tourism ministry official.
