Attorney General Ahmed Usham has assured that the Government will ensure the planned Eagle Hills development in Rasmalé is implemented in accordance with the Constitution and laws of the Maldives.
The Attorney General made the statement in a social media post responding to allegations that the Government had sold a portion of Rasmalé to a foreign entity.
The Maldivian Government and Abu Dhabi-based developer Eagle Hills signed an agreement on September 21 for the development of a USD 20 billion waterfront and marina project in Rasmalé. The agreement envisages leasing 500 hectares of land in Rasmalé to the company for a period of 99 years.
The arrangement has drawn criticism from some opposition figures, who have alleged that it amounts to an unlawful sale of Maldivian land to a foreign party.
Addressing the issue, Attorney General Usham outlined the legal framework governing long-term leases in the Maldives. He noted that the country introduced its first tourism law in 1999, allowing resort islands to be leased for up to 25 years.
He said the maximum lease period was subsequently increased to 50 years through an amendment in 2010 and later extended to 99 years in 2015.
Citing Article 8 of the tourism law, Usham said that when a 99-year lease for a tourist resort expires, the Government is required to compensate the investor for the amount due after depreciation is deducted from the value of the investment made on the island.
Regarding the proposed Rasmalé project, the Attorney General said it would be governed by the real estate legislation currently being formulated.
He clarified that the parties have so far signed only a Letter of Intent, also referred to as a Commercial Terms Agreement, concerning the development.
Further negotiations will be held based on the terms already agreed, after which the parties are expected to prepare and sign a subsequent agreement before the project moves forward.
Usham also noted that Parliament would be required to enact the necessary legislation related to the project.
He stressed that the Government would not take any step in implementing the Rasmalé development that conflicts with the Constitution or the laws of the Maldives.
