Dr. Abdulla Mausoom, the Minister of Tourism, has announced that the agreement signed in 2008 to develop Bodufinolhu, Laamu Atoll, as a tourism training resort, will be cancelled due to the contractor’s failure to initiate fieldwork in the last 13 years.
During a parliamentary session, Minister Mausoom expressed his concern about Premier Equity Private Limited’s inability to launch the project despite numerous discussions. He further stated that the representative parliamentarians and councils of Laamu Atoll no longer believe that the company can develop Bodufinolhu.
Furthermore, Minister Mausoom pointed out the complications in settling the issue out of court due to the conflicting conditions between Premier Equity and the government. The government will also have to reimburse the USD2.7 million paid by the contractor to terminate the agreement.
Additionally, Minister Mausoom stressed the importance of establishing an international university or college to boost the development of the Maldivian tourism industry. He also mentioned the need for more tourist beds in Laamu Atoll following the opening of Kadhdhoo International Airport. He acknowledged the challenges in terminating agreements related to the lease of islands and recommended the implementation of a system that allows the government to recover the cost of failed island developments.