MPs of the ruling People’s National Congress (PNC) have risen in defence of an agreement to grant 500 hectares of land in Rasmalé to the UAE-based Eagle Hills company in perpetuity, labelling those who oppose the deal as "traitors."
The project involves reclaiming land at a cost exceeding one billion dollars in state funds.
The Parliament is currently debating an emergency motion filed by Galolhu South MP Meekail Naseem, calling for the disclosure of the agreement made with Eagle Hills. During the debate, PNC MPs have been accused of distorting information in a concerted effort to defend the project.
PNC lawmakers, including Funadhoo MP Mohamed Mamdhooh and Fuvahmulah South MP Ibrahim Hussain, characterised opponents of the Rasmalé project as traitors to the nation.
"Only traitors would stand against a project like this, which is so beneficial to the citizens. That is exactly what the MDP is doing," Mamdhooh stated.
In the Maldives, resort islands are not designated for residential living, and the government does not fund their development. Furthermore, resort leases are extended for 99 years only upon payment of fees to the state, and the duration is not reset upon transfer.
"Every resort currently developed in the Maldives is granted for 99 years. The Eagle Hills project is currently under a commercial terms agreement; there is no formal [final] agreement yet. These members are trying to deceive the public by claiming an agreement exists to give land for 99 years, and that it resets for another 99 years once that term expires," said PNC Parliamentary Group Leader Ibrahim Falah.
In contrast, Rasmalé is being developed as a site where foreigners can establish residency. Under the proposed terms, the 99-year lease period for properties would reset with every transfer of ownership. PNC members have attempted to downplay this distinction.
"No resort in this country is held forever. That’s not how things work globally. If a 99-year contract is renegotiated after nine years, only 90 years should remain on that contract," argued Maafannu South MP Abdulla Rifau.
However, Eagle Hills has provided assurances that if an apartment or land plot is sold or inherited before the initial 99-year term expires, the new owner will receive a fresh 99-year lease.
"I repeat, this is the greatest asset of the Maldivian state, and the PNC will utilise this asset in the most beneficial way for the Maldivian people. As we pass and amend bills to facilitate this, we will ensure any unfavourable elements are removed," said Henveiru South MP Imran Latheef.
Construction Minister Abdulla Muththalib signed the agreement on behalf of the government on September 21. The government intends to amend several Maldivian laws to facilitate the project's execution.
In their defence of the Rasmalé deal, PNC members frequently cited the agreement made by the first MDP administration to lease the airport to GMR. That deal was for a 25-year term. Many current senior PNC figures were at the forefront of protests calling for the termination of the GMR contract.
"They don't talk about selling the water company. They don't talk about selling Dhiraagu. They don't talk about selling the main gateway of the airport. All these things happened in their past, and the people did not consent to them," said Milandhoo MP Hassan Mufeed.
The termination of the GMR agreement resulted in the state paying hundreds of millions of dollars following an arbitration ruling. This payout contributed to the debt crisis currently facing the Maldives.
While the Constitution allows for land to be granted to foreigners for periods not exceeding 99 years, no legislation currently exists for residential land. The Tourism Act allows for 50-year leases with a possible 49-year extension.
Under the Special Economic Zones (SEZ) Act, land can be leased to foreign entities for a maximum of 66 years, with a potential 33-year extension.
A case has already been filed with the Supreme Court seeking to halt the Rasmalé project, alleging that the land grant terms are unconstitutional.
