Housing Minister Dr Abdulla Muththalib has said the agreement with UAE's Eagle Hills for the Maldives Marina and Waterfront project in Rasmale’ was signed under the government’s rules for Private Sector Initiated Proposals (PSIP).

The Minister was responding to questions from Galolhu North MP Mohamed Ibrahim (Kudu), who asked why the government had not opened the project to competitive bidding before granting Eagle Hills a 99-year agreement over a large area of Rasmale’.

In a written response to the MP’s questions about the project, which has been valued at USD 20 billion, Minister Muththalib said the agreement was signed in accordance with Article 10.22(C) of the State Finance Regulation, which governs private sector-initiated proposals.

“The agreement was signed under the Procedure relating to Private Sector Initiated Proposals (PSIP Procedure) as stipulated in Section 10.22(C) of the State Finance Regulation,” the minister said.

Minister Muththalib also said details of the main provisions of the signed commercial terms agreement had been made public.

When asked about the project’s investment schedule, Minister Muththalib said the details would be included in the main agreement, along with provisions outlining what would happen if the project was not completed.

The minister also outlined the project’s expected financial and economic benefits in his response to the MP.