Minister of Tourism Dr. Abdulla Mausoom has stated that the agreement signed in 2008 to develop Bodufinolhu, Laamu Atoll, as a tourism training resort will be terminated after the contractor failed to begin fieldwork in the last 13 years.
Responding to questions at the Parliament, Minister Mausoom expressed concern over the inability of Premier Equity Private Limited to begin the project. He said numerous discussions were held but no progress has been made, adding that the representative parliamentarians and councils of Laamu Atoll no longer believe that the company can develop Bodufinolhu.
Additionally, Minister Mausoom expressed uncertainty in settling the issue out of court due to the conflicts in the conditions set by Premier Equity and the government. He also said the government has to repay the USD2.7 million paid by the contractor to terminate the agreement.
Furthermore, Minister Mausoom highlighted the importance of establishing an international university or college for the development of the Maldivian tourism industry. He further said more tourist beds will be needed in Laamu Atoll after the opening of Kadhdhoo International Airport. He noted the difficulties in terminating agreements related to the lease of islands and said that a system should be in place to allow the government to recover the cost of the failure to develop the islands.