Former President Mohamed Nasheed, Chairperson of the main opposition Maldivian Democratic Party (MDP), has expressed concern over the government's decision to grant a large area of Rasmalé to a UAE-based company without a competitive bidding process.
The Maldivian government yesterday signed a commercial terms agreement with UAE developer Eagle Hills to develop a waterfront and marina in Rasmalé. Detailed specifics of the agreement have not yet been disclosed to the public.
Approximately 500 hectares of Rasmalé, which is currently being reclaimed using state funds, is set to be handed over to Eagle Hills without an open tender. In a post on X today, Nasheed drew parallels by sharing details regarding the agreement to lease the national airport to India’s GMR Group during his administration.
"The sale of assets and shares in state-owned enterprises must be conducted through a fully transparent, competitive bidding system. During the first MDP government, the management of Hulhulé Airport was awarded for 25 years through a transparent bidding process facilitated by the International Finance Corporation (IFC)," Nasheed wrote.
Nasheed noted that GMR, the winning bidder, provided an upfront payment of $78 million to the Maldivian government. At the time, the reason opposition parties protested against his government was the 25-year lease of the airport to GMR.
The IFC is an international financial institution and a member of the World Bank Group that provides investment, advisory, and asset management services to encourage private-sector development in developing countries.
Nasheed’s administration signed the 25-year airport lease on June 29, 2010, with the company committing to an investment of $373 million. The airport deal was a central theme used by the opposition during the movement that eventually led to the change of Nasheed’s government.
At the time, opposition parties alleged the agreement was corrupt and launched a major campaign titled "Maldivians' Airport for Maldivians." Following the change in administration, the government of Mohamed Waheed decided to terminate the GMR agreement on November 27, 2012.
After GMR took the matter to arbitration, the Maldivian government was ordered to pay $271 million in compensation. The debt incurred by the Maldives to settle this payment has become a factor in the country's current debt crisis.
