Parliament has accepted a Government bill seeking to introduce a new law governing the leasing of uninhabited islands and lagoons in the Maldives.
The bill was submitted on behalf of the Government by Thinadhoo North Member of Parliament Saudullah Hilmy. It details the procedures for leasing uninhabited islands and lagoons for various purposes, including the leasing of uninhabited islands that have not been designated for a specific purpose.
The leasing of uninhabited islands and lagoons is currently governed by the Maldives Uninhabited Islands Act. The proposed legislation seeks to repeal the existing law and establish the circumstances and procedures under which uninhabited islands and lagoons may be leased.
Under the bill, as is currently the case, the President will designate uninhabited islands and lagoons for different purposes. Uninhabited islands may be designated for tourism, fisheries, agriculture, industrial, economic and social purposes, State purposes, as well as special purposes specified under other laws.
With the exception of uninhabited islands designated for tourism and industrial purposes, councils will be responsible for leasing islands that fall within their respective jurisdictions. Lagoons designated for different purposes will be leased by the ministry responsible for the respective lagoon.
The bill states that uninhabited islands may be leased for commercial purposes to companies or partnerships registered in the Maldives, sole proprietorships, as well as foreign companies or partnerships re-registered in the Maldives.
For purposes other than commercial activities, uninhabited islands may also be leased to any Maldivian citizen, registered businesses and registered associations.
Lagoons may be leased for large- and medium-scale industrial activities, economic activities involving an investment of at least USD 64,851, as well as aquaculture and related activities.
Under the bill, an uninhabited island designated for a particular purpose may be leased for a period of 21 years. If an extension is sought, the lease may be extended provided that the total lease period does not exceed 50 years.
The bill also specifies the rent for uninhabited islands and the acquisition cost of lagoons. It states that the acquisition fee for uninhabited islands leased for different purposes will be determined by the ministry responsible for financial matters.
The bill further states that an uninhabited island that has not been designated for a specific purpose may be leased for a maximum period of five years. The lease may be extended for a further five years.
A violation of the law on an uninhabited island leased under the five-year arrangement may result in a fine of up to USD 32,425. A violation committed on a leased uninhabited island or lagoon may result in a fine of up to USD 64,851.
Once the proposed law comes into force, existing agreements for uninhabited islands and lagoons leased under the current law, as well as agreements for islands leased under the five-year arrangement, will remain valid. However, all provisions of the new law will apply to those agreements, except the procedures governing payments under the respective leasing arrangements.
The bill was accepted with the support of 57 Members of Parliament and has been referred to the Committee of the Whole House for review.