Picnic islands to be redeveloped as resorts

The government has announced request for tender on development of a number of islands, hitherto used as picnic islands for tourists, as new resorts.

These islands will be leased under a joint-venture arrangement, with the government reserving a 5 per cent share, for a period of 50 years. Interested parties are required to pay a minimum advance payment of 3 million US Dollars.

The Cabinet made the decision last week, after deliberations on a proposal made by the Ministry of Tourism. Mariyam Zulfa, the Minister of Tourism, said today that the decision was made with the view “to legalize the set ups in the islands which are now leased as picnic islands”. She also said that the opportunity to develop new resorts in these islands would only be given to parties who agree to pay the advance payment of USD 3 million or more. “Starting point for advance payments would be USD 3 million”, she said.

The Minister also said that various parties had filed requests in the past to develop picnic islands as new resorts. She also stated that no more islands would be leased as picnic islands.

According to the announcement made on the government gazette, tenders for the islands must be submitted within a period of 90 days. The announcement said that parties are obliged to pay an initial amount of USD 1 million before signing lease agreements, and that the remaining sum of the advance payment can be made within a period of 12 months from the date of signing.