Parliament has passed a Government bill seeking to introduce a new law governing the leasing of uninhabited islands and lagoons in the Maldives.
Thinadhoo North Member of Parliament Saudulla Hilmy submitted the bill on behalf of the Government. The bill outlines procedures for leasing uninhabited islands and lagoons for various purposes, as well as leasing uninhabited islands that have not been designated for a specific purpose.
The Maldives Uninhabited Islands Act currently governs the leasing of uninhabited islands and lagoons. The proposed legislation seeks to repeal the existing law and establish the circumstances and procedures under which uninhabited islands and lagoons may be leased.
Under the bill, as is currently the case, the President will designate uninhabited islands and lagoons for different purposes. Uninhabited islands may be designated for tourism, fisheries, agriculture, industrial, economic and social purposes, State purposes, as well as special purposes specified under other laws.
With the exception of uninhabited islands designated for tourism and industrial purposes, councils will handle the leasing of islands within their respective jurisdictions. The ministry responsible for a particular lagoon will lease that lagoon for the designated purpose.
The bill also sets out who may lease uninhabited islands. For commercial purposes, companies or partnerships registered in the Maldives, sole proprietorships, as well as foreign companies or partnerships re-registered in the Maldives may lease such islands. For purposes other than commercial activities, uninhabited islands may also be leased to any Maldivian citizen, registered businesses and registered associations.
Lagoons may be leased for large- and medium-scale industrial activities, economic activities involving an investment of at least USD 64,851, as well as aquaculture and related activities.
Under the bill, an uninhabited island designated for a particular purpose may be leased for 21 years. If an extension is sought, the lease may be extended provided that the total lease period does not exceed 50 years.
The bill also specifies the rent for uninhabited islands and the acquisition cost of lagoons. It states that the ministry responsible for financial matters will determine the acquisition fee for uninhabited islands leased for different purposes.
For islands that have not been designated for a specific purpose, the bill allows a maximum lease period of five years. The lease may then be extended for a further five years.
The bill also establishes penalties for violations. A violation of the law on an uninhabited island leased under the five-year arrangement may result in a fine of up to USD 32,425, while a violation committed on a leased uninhabited island or lagoon may result in a fine of up to USD 64,851.
Once the new law comes into force, agreements for uninhabited islands and lagoons leased under the existing law, as well as agreements for islands leased under the five-year arrangement, will remain valid. However, all provisions of the new law will apply to those agreements, except the procedures governing payments under the respective leasing arrangements.
Parliament passed the bill with 47 Members of Parliament voting in favour and 12 voting against.