MVR 50,000 required as bid security to rent uninhabited islands

Ministry of Fisheries and Agriculture has announced that MVR 50,000 should be deposited as bid security to rent uninhabited islands.

According to a new policy published last week, in addition to the bid security which will be held for 45 days, MVR 100,000 should be paid as security deposit within seven days of receiving the notification letter confirming the receipt of the island.

The bid security will be claimed by the government in the event that the security deposit is not paid within the required duration, read the announcement published on the Government Gazette.

Along with the application form, applicants are also required to submit the Proof of Finance for the proposed project.

The policy further states that to encourage the project as agreed by both parties, the government will hold 10 percent of the initial two years’ capital investment as Performance Guarantee, which will have a duration of 18 months. If the work is not carried out according to the agreed plan, the Performance Guarantee thus held will be claimed by the government, and the lessee will be given six months to complete the work – failing which the agreement would be terminated.