Court overrules government on lagoon development joint venture
24 Jul 2014, 6:08 PM
The Civil Court has ruled in favour of Prime Capital Maldives Pvt Ltd in a contract dispute with the government over a joint venture agreement to develop a special tourism zone in Kaafu Atoll Fushidhiggaru lagoon.
In September, Prime Capital sued the government after the Ministry of Economic Development refused to register the joint venture company (JVC) citing lack of authorisation from the president as required by law.
In a verdict (Dhivehi) delivered on July 15, Civil Court Judge Ali Naseer ordered the government to register the JVC within a seven-day period, sign a master lease agreement within five days of registration, “and [to] make all arrangements undertaken by the government in accordance with the agreement”.
An agreement was signed between Prime Capital and the Maldivian government on January 18, 2013 – under the administration of former President Dr Mohamed Waheed – to lease the Fushidhiggaru lagoon for a 50-year period to a JVC with a 25 percent stake for the government.
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