News Desk
The mega-development project in Rasmalé by UAE-based Eagle Hills is proceeding as a private sector initiated proposal under the Public-Private Partnership framework, Infrastructure Minister Dr Abdulla Muththalib has confirmed.
The minister’s clarification came in response to a formal letter sent on September 29 by North Galolhu MP Mohamed Ibrahim, who raised concerns regarding why a vast area of Rasmalé was being leased to Eagle Hills for 99 years without going through an open bidding process.
Replying to the lawmaker, Dr Muththalib explained that the agreement with Eagle Hills was executed under Clause 10.22 of the State Finance Regulations. The clause allows the government to accept unsolicited project proposals submitted directly by private entities rather than initiating competitive public tenders.
Addressing worries over the proposed 99-year lease period, the minister stressed that the government has so far only signed a commercial terms agreement outlining basic business principles. He assured that the final binding contract will only be signed after thorough consultations and ensuring full compliance within the limits of the Constitution and existing legislation.
“The state will receive 10 per cent of total revenue earned by Eagle Hills as land premium. Total receipts from land lease or premium are estimated to reach USD 3 billion,” Dr Muththalib stated in his response.
He added that state earnings are projected to rise in tandem with surging market property values. Furthermore, the signed commercial terms mandate that USD 500 million (approx. MVR 7.7 billion) generated from the transaction will be directly earmarked to fund public housing projects for citizens.
The proposal to develop the modern “Maldives Waterfront and Marina” in Rasmalé was spearheaded by Eagle Hills, a private real estate firm based in Abu Dhabi. The company was founded by Mohamed Alabbar, the prominent UAE businessman behind Emaar Properties, which built Dubai’s iconic Burj Khalifa and Dubai Mall.
Reiterating the government’s stance, Dr Muththalib assured that the massive reclamation and development project will proceed while firmly safeguarding state sovereignty and public land ownership.
