The development of former Nasandhura Palace Hotel in capital Male into a four-star hotel has commenced under contract with one of China’s largest private construction firms.
The government had leased the land plot of former Nasandhura and an adjacent plot for fifty years last year to a company of which president Abdulla Yameen Abdul Gayoom’s brother-in-law Mohamed Manik is a shareholder.
Some media had previously reported that the development of the largest tourist hotel in Male was awarded to CCCC Second Harbour Engineering Company, the Chinese firm currently constructing a bridge linking Male and airport island Hulhule. However, Mihaaru now understands that the project has been awarded to Zhongtian Construction Group, which is currently in preparation to commence construction.
Zhongtian Construction is a subsidiary of private firm Zhongtian Development Holding Group Ltd. The firm is an infrastructure development company, such as buildings, railways and bridges, and have undertaken projects in China and other Asian countries. Zhongtian is also ranked among China’s 500 largest firms including state-run companies.
However, an official announcement is yet to be made. The procedure for awarding the project to Zhongtian has also not been disclosed.
The former Nasandhura Palace Hotel had been closed down during the twilight of former president Maumoon Abdul Gayoom’s regime to develop a park and restrooms for tourists in the land plot. However, following the change in government, former president Mohamed Nasheed had reopened the hotel, leasing its operation to Galaxy Enterprises for a period of eight years.
Incumbent president Abdul Yameen Abdul Gayoom’s brother-in-law Mohamed Manik is a shareholder of Galaxy Enterprises. Management of Nasandhura Palace Hotel had later been handed over to another company, unnamed in the auditor general’s report but believed to be NPH Investment Pvt Ltd which was newly founded with Manik as a shareholder.
The auditor general has raised concerns regarding the handover, stating that the long-term lease of the land had been issued with a CSR (corporate social responsibility) component instead of payment to the state. However, details of the CSR has not been disclosed, which the auditor general had urged to be finalised.
However, it remains unclear whether the government has reached a decision.
According to the auditor general’s special report on the embezzlement charges surrounding the nation’s main tourism promotion body, Maldives Marketing and Public Relations Corporation (MMPRC), the tourism ministry had annulled the former agreement on Nasandhura on January 27 and on the same day signed to hand over Nasandhura and the adjacent building housing the former Island Aviation Services to MMPRC.
The two land plots were then leased to a company unnamed in the report, but believed to be NPH Investment. Following the handover, Sri Lankan media reported of NPH signing with Lankan company Browns Hotels and Resorts to develop a four-start hotel with 150 rooms and 100 apartments. In addition to NPH, Alpha Kinam Holdings Pvt Ltd, another company of which Manik is a shareholder, had signed the contract.
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