DRP MP proposes two-year lease extension for resorts under development

Presenting the amendment bill to parliament, MP Mohamed Mujthaz of the opposition Dhivehi Rayyithunge Party (DRP) explained that the legislation would write-off unpaid fines from the new resorts as heavy fines were an impediment to financing the development or attracting foreign investors.

“Of the 84 islands leased for resort development, only 10 have been completed while 74 have not,” he said. “With the current prices in the construction industry, millions of dollars are needed to develop the most ordinary resort. Considering the 74 islands with stalled development, this is a large amount.”

He added that local banks did not have the capacity to finance the projects while international financial institutions were not “too supportive.”