Minister of Infrastructure, Housing and Urban Development Dr Abdulla Muththalib has said the advance payment from the Rasmalé development project is significantly larger than amounts received under previous projects undertaken with foreign parties in the Maldives.
Minister Dr Muththalib made the remarks in response to concerns raised by some political figures over the Rasmalé development project. Providing information to PSM News, he said that although the Government would not receive the advance in cash in the conventional manner, a housing project would commence as an advance before the main Ras Malé development begins.
Under the Commercial Terms Agreement currently signed with Eagle Hills, the company will undertake a 5,000-unit housing project as an advance for the Rasmalé development. Minister Dr Muththalib said the housing project is valued at USD 500 million.
Comparing the arrangement with previous projects involving foreign parties, Minister Dr Muththalib said the Maldives received USD 78 million as an acquisition cost when the airport was handed over to GMR and USD 40 million as an acquisition cost for Emboodhoo Lagoon. He said the value being received under the Rasmalé arrangement is several times higher than those amounts.
Although the advance will not be received in cash, Minister Dr Muththalib said Eagle Hills had agreed to undertake the USD 500 million housing project, which will directly benefit Maldivians, before the company begins receiving revenue from its own project.
Minister Dr Muththalib said the Government decided to proceed with the Rasmalé development in the Malé region after considering the requirements of Eagle Hills. As the project represents a private foreign investment, he said the Government would not decide to undertake it in a particular location without taking the investor's requirements into consideration.
Instead, the Government prioritised an arrangement that would maximise the benefits of the project for Maldivians. Minister Dr Muththalib said that as Maldivians will live in one part of Rasmalé, development in the surrounding area would help populate and develop the area. He said creating economic benefits and employment opportunities as the area becomes populated is also important to the Government.
Minister Dr Muththalib said Eagle Hills was willing to undertake the project in Rasmalé and that the Government decided to proceed with the arrangement because it would provide significant benefits to the Government.
The Maldivian Government and prominent Abu Dhabi developer Eagle Hills signed an agreement on the 21st of this month to develop a USD 20 billion waterfront and marina project in Rasmalé. Under the project, Eagle Hills will develop an area spanning 500 hectares.
President Dr Mohamed Muizzu has assured that proceeding with an economic development project in Rasmalé will not result in the cancellation or suspension of any land plots allocated to citizens or housing projects planned for the area.