MDP submits parliamentary resolution demanding details of $20bn Rasmale’ deal

A lawmaker from the main opposition Maldivian Democratic Party (MDP) submitted a parliamentary resolution on Monday, demanding the disclosure of details of the commercial terms agreement signed on a USD 20 billion waterfront and marina project planned for Rasmale’.

On September 21, Abu Dhabi-based real estate developer Eagle Hills signed a commercial terms agreement or letter of intent for a mega project to develop a new integrated island destination in Rasmale’, including international hotels and resorts, premium and branded residences, a world-class marina, waterfront promenades, restaurants, shops, leisure and wellness centers.

On Monday, South Galolhu MP Meekail Ahmed Naseem submitted a resolution demanding the public disclosure of all details of the commercial terms agreement, as well as a parliamentary debate on the project.

In his resolution, Meekail said that President Dr. Mohamed Muizzu said he would not give any part of Rasmale’ to foreigners, whether by lease or free of charge.

He said that the people have a lot of concerns regarding the deal, and questioned why the government hasn’t disclosed the details of the commercial terms agreement.

He alleged that the agreement was designed a way that there was no way to recoup the cost of reclaiming Rasma’e', which is funded by taxpayer money.  He also alleged that 500 hectors of land was being given to Eagle Hills for 99 years without charging an acquisition cost or lease.

Meekail said that the agreement also allows for Eagle Hills to generate rolling interest or compound interest through lease of developments to third parties.

Concealing information on such a major project would result in significant losses to the state’s finances and lead to corruption, he warned.

The waterfront and marina project is described by the Maldives government as one of the most ambitious development initiatives in the country’s history.

Addressing the controversy surrounding the project, Housing Minister Dr. Abdulla Muthalib stressed on September 27 that those who purchase property from Rasmale’ will own the property alone, and not the land it is built on.

He refuted claims of tax exemptions and automatic inheritance, stating that if such a property were to be sold or inherited upon death of the original owner, it would require approval from the Maldivian government, and would be subject to necessary fees.

He also refuted allegations that those who purchase property from Rasmale’ can automatically secure visas for themselves and their family.

According to the Maldives government, preliminary economic impact estimates indicate the project could attract more than USD 30 billion in gross foreign investment over its lifetime, including about USD 18 billion in net foreign investment in the Maldives.

It is also expected to create more than 54,000 direct and indirect jobs. At full maturity, the destination is expected to attract more than one million visitors annually and generate more than USD 2 billion in annual tourism revenue.