Meedhoo MP Ahmed Siyam Mohamed has resubmitted a request seeking a sovereign guarantee to secure a USD 165 million resort development loan.
Adhadhu obtained a letter sent from the tycoon in his capacity as owner of Emerald Resorts to President Dr. Mohamed Muizzu on April 7.
According to the letter, terms have been negotiated with China's Shanghai Construction Group to develop the Emerald Lagoon in the southern edge of Male' atoll. The loan was to be taken from a Chinese bank.
But the loan needed for the estimated USD 165 million project could only be obtained with a sovereign guarantee from the Maldives government, Siyam's letter stated. The lending bank required written confirmation of the sovereign guarantee from the government, it added.
The resort to be developed in Emerald Lagoon would have more than 1,500 rooms, according to Siyam's letter.
In January 2018, former President Abdulla Yameen's government issued a sovereign guarantee to a company owned by Siyam to obtain a loan for the project. However, a new document was needed to show that there was no objection from the current government.
Despite the leak of Siyam's letter, the Finance Ministry denied receiving any such proposal.
Emerald Lagoon.
A different company owned by Siyam previously obtained a USD 127 million with a sovereign guarantee. The loan was taken from China's Exim Bank with a guarantee from Yameen's government in 2017 to develop a resort in Noonu Dhigurah. After completing the development, the resort is now operating as "Siyam World."
It is unclear whether the government has provided a sovereign guarantee in response to Siyam's letter.
The request from Siyam's company came after his Maldives Development Alliance (MDA) allied with the government.
Siyam was re-elected to his Meedhoo constituency's seat for a fourth consecutive term on Sunday with President Muizzu's endorsement. Siyam's party won two seats in Parliament, both of which are counted as pro-government seats.
Siyam decided to support President Muizzu for the second round of the presidential election after forming a coalition with the Maldivian Democratic Party (MDP) to back former President Ibrahim Mohamed Solih in the first round.
