An MoU has been signed to discuss handing over the country's main commercial harbour managed by the Maldives Ports Limited (MPL) to a Philippines company for 25 years, Adhadhu has learned.

A reliable source informed Adhadhu that the MoU was signed three months ago. The MoU's period ends on June 28, Adhadhu understands.

According to information obtained by Adhadhu, the MoU was signed in a manner that could cause a significant loss to MPL. If MPL does not reach an agreement to hand over the commercial harbour to the Philippines company, a penalty of USD 5 million would have to be paid, Adhadhu has learned.

Moreover, discussions are also taking place about completely handing over management of the commercial harbour under development in Thilafushi to the Philippines company for 25 years.

If such an agreement is reached, the company would earn 98 percent of profits from the ports during the 25-year period with the Maldives government to only earn two percent, Adhadhu understands. The government is to arrange the financing needed for developing the commercial harbour with a loan to be taken through the company.

While discussions related to the port are taking place with such a large source of income to be forgone, MPL is a company that has the capacity to carry out such a project with a loan.

Some officials of MPL who spoke on the condition of anonymity said the deal would cause a massive loss to the company. Some officials of the company are opposed to the move but the government's economic council has been trying to reach the agreement, Adhadhu understands.

The latest annual report made public by MPL was for 2022. The report showed that the company handles more than 119,000 containers a year and earned a net profit of MVR 112.6 million for the year.