PNC MP says anyone against $20bn Rasmale’ deal is a ‘traitor to Maldivian people’

A lawmaker from the ruling People’s National Congress (PNC) on Wednesday described anyone speaking against the USD 20 billion waterfront and marina project planned for Rasmale’ as a traitor to the Maldivian people.

On September 21, Abu Dhabi-based real estate developer Eagle Hills signed a commercial terms agreement or letter of intent for a mega project to develop a new integrated island destination in Rasmale’, including international hotels and resorts, premium and branded residences, a world-class marina, waterfront promenades, restaurants, shops, leisure and wellness centers.

Mohamed Mustafa Ibrahim, the representative for West Maafannu constituency, made the remark during a parliamentary debate on a resolution submitted by the main opposition Maldivian Democratic Party (MDP) demanding details of the commercial terms agreement signed with Eagle Hills.

The resolution by Meekail Ahmed Naseem, the representative for South Galolhu constituency, was submitted on October 12.

During Wednesday’s debate, Mustafa insisted that the government was proceeding with the project with full transparency.

“They are meeting reporters, meeting them and sharing all information. The government is getting this done. And the investors have met with reporters, met with all reporters, gave time to all reporters and are sharing everything about how this, including the agreement,” he said.

Mustafa said that while the opposition keeps talking about a property in the Maldives being leased for 99 years, it was back in 2015, during former President Abdulla Yameen Abdul Gayoom’s administration, that the laws were revised to allow it. He pointed out that the Yameen administration had leased 750 hectors from the Emboodhoo lagoon for a USD 40 million project back them.

“It was given for 99 years. Back them, it was estimated the state would receive an annual revenue of USD 2 million from it. It was during the former administration, and a Parliament that the lawmaker who submitted this resolution sat in, that approved the lease of 750 hectors from N. Atoll. That too, for 99 years. The annual revenue projection was USD 2 million, with the project valued at USD 27 million. And that’s not all, another 700 hectors were leased from V. Atoll. For 99 years, for a USD 30 million investment, and a projected annual state revenue of USD 2 million,” he said.

Mustafa said that President Dr. Mohamed Muizzu’s administration was trying to lease 500 hectors for 99 years for a USD 20 billion project - one that is estimated to generate USD 1.3 billion in annual revenue for the state.

He said that those opposing the project were a group of people who gave up 750 hectors and another who gave up 1,450 hectors – criticizing the administrations of both Yameen and former President Ibrahim Mohamed Solih.

Mustafa said the waterfront and marina project would bring prosperity to the Maldives, and that those opposed to it were against the country’s prosperity.

“I repeat, those speaking against this project in the Maldives are traitors to the Maldivian people. This are things that people who don’t want development and prosperity of the Maldives would engage in,” he said.

Meekail’s resolution demands the public disclosure of all details of the commercial terms agreement signed with Eagle Hills, as well as a parliamentary debate on the project.

In his resolution, Meekail said that President Muizzu said he would not give any part of Rasmale’ to foreigners, whether by lease or free of charge.

He said that the people have a lot of concerns regarding the deal, and questioned why the government hasn’t disclosed the details of the commercial terms agreement.

He alleged that the agreement was designed a way that there was no way to recoup the cost of reclaiming Rasmale', which is funded by taxpayer money.  He also alleged that 500 hectors of land were being given to Eagle Hills for 99 years without charging an acquisition cost or lease.

Meekail added that the agreement also allows for Eagle Hills to generate rolling interest or compound interest through lease of developments to third parties.

Concealing information on such a major project would result in significant losses to the state’s finances and lead to corruption, he warned.

The waterfront and marina project is described by the Maldives government as one of the most ambitious development initiatives in the country’s history.

Addressing the controversy surrounding the project, Housing Minister Dr. Abdulla Muthalib stressed on September 27 that those who purchase property from Rasmale’ will own the property alone, and not the land it is built on.

He refuted claims of tax exemptions and automatic inheritance, stating that if such a property were to be sold or inherited upon death of the original owner, it would require approval from the Maldivian government, and would be subject to necessary fees.

He also refuted allegations that those who purchase property from Rasmale’ can automatically secure visas for themselves and their family.

According to the Maldives government, preliminary economic impact estimates indicate the project could attract more than USD 30 billion in gross foreign investment over its lifetime, including about USD 18 billion in net foreign investment in the Maldives.

It is also expected to create more than 54,000 direct and indirect jobs. At full maturity, the destination is expected to attract more than one million visitors annually and generate more than USD 2 billion in annual tourism revenue.