Majlis passes bill to allow lease of islands without open-bidding

People’s Majlis has passed the bill allowing for Ministry of Tourism to lease islands, lagoons and land for tourism without open-bidding.

The bill was proposed on behalf of government by Majlis Majority Leader, Vilimale’ MP Ahmed Nihan Hussain Manik.

The bill was passed with the vote of 45 members during Majlis meeting on Wednesday.

19 members voted against the bill.

The bill was passed despite ruling Progressive Party of Maldives leader, Former Maldivian President Maumoon Abdul Gayoom’s plea that the amendment was detrimental to the development of the country.

The bill states that islands can be leased without open-bidding if Ministry of Tourism is provided details of the project, if the island, lagoon or land is suitable for the proposed project from an environmental point of view, and if the party is financially and skill-wise capable, and is able to pay the acquisition fee in bulk.

It also states that Ministry of Tourism needs to evaluate such proposals transparently and fairly, ask for permission from President’s Office before finalizing the lease, and share the information with Anti-Corruption Commission and Auditor General’s Office after the lease is finalized.

Important parts of the bill:

• Permission needs to be sought from President’s Office before leasing islands, lagoons, land for tourism.

• Islands, lagoons and land can be leased without open-bidding.

• Government has the authority to sell its shares in joint ventures set up for tourism.

• Environment of islands, lagoons and land needs to be considered.

• Acquisition fee determined by government needs to be paid in bulk.

In addition to this, the bill calls for a list of the number of islands, lagoons and land that will be leased each financial year to be compiled and published after discussion with President’s Office. Any changes made to the list also needs to be authorized by President’s Office.

It also introduces green tax to guesthouses at the rate of USD 3 per night – which will be implemented starting October 1.

The rate of green tax was reduced from USD 6 to USD 3 by Economic Affairs Committee.