Dhipparufushi Island, an 8.2-hectare strip of narrow land, has been leased to MP Jaufar Dawood without an open bid. 

A letter addressed to MP Dawood from the Ministry of Tourism says that it has decided to extend the time period for the island’s acquision cost, though it makes no mention of the sum. RaajjeMV understands that the lease acquisition cost is USD 1,025,000 (one-and-a-quarter million).

MP Dawood will have until 29th March to make this payment. 

The letter, which is signed by Hussain Lirar – the ministry’s deputy – says that this is the final extension, and if Dawood fails to make the payment, the leasing contract will be terminated.

Tourism Ministry chose to grant Dawood his requested extension on the grounds that the island was too remote to conduct construction smoothly and there being ‘hindrances’ to acquiring investors. 

After a 2016 amendment to the Tourism Act, the government is allowed to accept unsolicited bids to acquire islands, lagoons, and other plots of land for development. 

Before the bill was passed, the government could only lease land for development under a bidding process. 

45 MPs voted in favour of the government-sponsored bill, while 19 votes against.