Government terminates “Ekulhivaru” agreement with MTDC

The Maldivian government has terminated the agreement with Maldives Tourism Development Corporation (MTDC) to develop a resort at Noon Atoll. Ekulhuvaru.

Chairperson of the MTDC, Ibthisham Ahmed Saeed confirmed the termination at their annual congress last night.

A resort was under development on the island by ENA Hotel Holdings Company, joint venture of MTDC and Ritz Carlton Hotels.

Even with all the permits to develop a resort and begin construction, no progress was made on the island since 2008 due to different issues.

But the MTDC Annual Report said that they were working to acquire the funds for the project in 2014 and 2015. And the MTDC and Ritz Carlton decided to invite another partner and continue the project.

During the session for the shareholders to express their opinion, shareholder at MTDC and former MP for Maafannu-West constituency, Abdulla Abdul-Raheem said that even if it was written in the annual report, N. Ekulhivaru was sold before the annual congress.

The Chairperson of MTDC said that the event of Ekulhivaru took place recently and it was yesterday that the MTDC learned of the events.

Chairperson Ibthisham said that MTDC took MVR 7 million when N. Ekulhivaru was sub-leased and if the agreement was terminated for any reason, they could claim MVR 17 million.

She said that comparing what could be gained to what is to be paid, it would result in a MVR 10 million profit, a “positive affect.” And said that there would be no loses to MTDC by losing Ekulhivaru.