The state has received USD1 million as the transfer fee for the Floating City Project, upon the lease of the lagoon under the Integrated Tourism Model.
The floating city is being developed in a lagoon near Aarah, Kaafu Atoll. The lagoon was previously leased under the resort development model. However, the agreement with the contractor Dutch Docklands has been revised to change the development model to an Integrated Tourism Model.
The revised agreement was signed between the Ministry of Tourism and Dutch Docklands on June 23. Upon the change to the Integrated Tourism Model, the contractor has paid a transfer fee of USD1 million to the state for the lagoon.
Speaking at the signing ceremony, Minister of Tourism Dr. Abdulla Mausoom said the government is working on diversifying the tourism industry by introducing different concepts of tourism development. He noted the new development model for the floating city would be highly beneficial in a social context, as it would enable housing units to be developed and sold at affordable prices for the public.
The Maldives Floating City project is the first of its kind to ever be developed in the world. The city will span a lagoon of 200 hectares, comprising of various establishments such as residences, shops, and hospitals. All of the establishments will be designed and developed to float on shallow water.
The project is expected to cost about USD 1 billion.