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Cross Subsidy regulation amendment benefit project financiers with plots

Mohamed Rehan
18 August 2022, MVT 08:28
tourism ministry
Mohamed Rehan
18 August 2022, MVT 08:28

Amendments to the Cross Subsidy regulations dictate private financiers on state-initiated projects will benefit with land plot allocations.

The cross subsidy regulation implemented by Ministry of Tourism states lands, plots or lagoons for cross-subsidy projects will be issued once the project fund has been provided to the state.

The project fund should be deposited to designated trust accounts.

Funds provided for specific projects, should be spent exclusively on designated projects. Balance from the trust account post project completion can be redirected into other projects.

The regulations also provide legal authority or mandate of issuing cross-subsidy projects solely on the President of Maldives.

Following announcement of projects, and after evaluation of contractor proposals, the projects will be awarded through the Economic Council.

The cross-subsidy approach in the Maldives centers on state's allocation of lands, plots or lagoons to private financiers if and when they fund for projects of economical benefit.

Ministry of National Planning, Housing and Infrastructure (MNPHI) on Wednesday, August 17, had announced development of six regional airports through cross-subsidy approach.

The first official regulation on cross-subsidy projects in the Maldives was announced in December 2021. After the regulation was rescinded, a new regulation was publicized on Sunday, August 14.

The previous regulation had grant cross-subsidy benefit exclusively to project recipients or contractors. However, the recent change to the regulation adds private or project financiers into the list.