North Galolhu MP Seeks Answers from Ministry on Ras Malé Lease, Housing and Investment Terms
Mohamed Ibrahim (Kudu) during the 28th Sitting of second session on 26 Aug.
Galolhu Uthuru MP Mohamed Ibrahim (Kudu) has submitted a parliamentary inquiry to the Housing Ministry seeking clarification on the legal, financial and economic arrangements behind the Ras Malé development project at Fushi Dhiggaru Falhu.
The inquiry, submitted under Article 98 of the Constitution, asks the government to provide detailed information on the selection of the project’s master developer, the proposed 99-year land lease, financing of 5,000 housing units and the project’s foreign exchange implications.
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Mohamed Ibrahim questioned the criteria used to select the master developer and the legal basis for leasing 500 hectares for up to 99 years, asking whether such a long-term lease is in the state’s best economic interest amid the country’s foreign exchange shortage.
He also sought clarification on the financial model for the 5,000 housing units, estimated to cost between USD 400 million and USD 500 million, and asked who would bear the financial risk if revenue from premium land sales falls below projections.
The MP questioned whether the document signed with the developer is a Commercial Terms Agreement rather than a final binding contract, and sought clarification over differing public figures for the project’s foreign investment value, which have ranged from USD 20 billion to USD 30 billion.
He also asked what proportion of revenue generated through property transactions would be required to remain within the Maldivian financial system, citing concerns over potential capital outflows and the country’s foreign exchange situation.
The inquiry further asks what financial and technical due diligence was conducted on the developer and whether the state has provisions to reclaim land or terminate lease rights if project milestones are not met.
On national security and sovereignty, the MP questioned the implications of granting 500 hectares to a master developer with rights to transfer or sub-lease development interests, and whether the arrangement adequately addresses housing needs in the Malé region.
He also asked whether the government had assessed the project’s potential impact on the country’s sovereign credit rating and whether increased reliance on foreign commercial entities could create geopolitical or security vulnerabilities.
