Foreign project contractors ineligible for Thilafushi land: HDC
Some businessmen have also met President Ibrahim Mohamed Solih to express their concerns.
By
Mohamed Muzayyin Nazim
Housing Development Corporation (HDC) said on Sunday that it will not lease land from Thilafushi to foreign companies that are executing the project.
HDC has announced that 4.3 hectares of land reclaimed from Thilafushi will be owned by locals and leased to foreign companies for industrial purposes for 99 years. There have been concerns from some quarters that such leases have been opened to be given to Indian companies that are executing projects in the country.
However, in a statement issued on Sunday, HDC denied this.
Foreign businesses can participate in the auction only if they are doing and intending to do under the government's Foreign Direct Investment (FDI) policy, HDC said in a statement. It should be for such people registered in the country, the statement said.
"This includes companies that have been allowed to undertake construction projects on a project basis will not be able to participate in the auction," HDC said in a statement.
"The company will work with the Ministry of Economic Affairs to verify whether the industrial uses offered by foreign companies seeking land lease are commercial uses permitted to them under the FDI policy, in the auction, as part of the process."
The statement added:
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Land is being allotted from Thilafushi as part of efforts to address the problems faced by industrial activities in the Maldives.
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This will provide space for new economic activity and will lead to more jobs.
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Such businesses will also bring about a positive change in the various services provided to the people.
HDC’s move to lease land to foreigners for 99 years has been condemned and criticised by some political parties. They demanded that the government reverse its decision, saying that if these parties come to power, they will take over the land from outsiders.
Some businessmen have also met President Ibrahim Mohamed Solih to express their concerns. Maldives National Association of Construction Industry (MASI), which participated in the meeting, said that the President has assured that the land sale policy will be amended to ensure that Maldivian businesses do not suffer.
However, the HDC's statement also did not say that it would stop leasing land to migrants for 99 years. Unlike in the past, only foreign investment companies registered in the Maldives can participate in the bidding process for land leased to foreigners for 99 years. Foreign companies coming to execute projects will not be allowed to participate in the auction.
Foreign investments are mostly made in the Maldives by foreign companies operating resorts.
