The government expects to sign a revised agreement with Tata Housing Developing Corporation next week to resume stalled housing projects in the capital Malé, Housing Minister Dr Mohamed Muiz revealed at a press conference yesterday.
The terms of the agreement were revised on the advice of the cabinet’s economic council after agreeing to some of Tata’s conditions, Muiz explained, and have now been forwarded to the Indian real estate developer for final approval.
“We have agreed that work must begin in two sites in Malé within 45 days of signing the amendments [to the contract],” Muiz said, referring to the Gaakoshi plot and former Arabiyya School premises.
Muiz further revealed that the government has also agreed to give back the vacant ‘Naadhee’ plot in Malé and approve construction on the site.
The site was taken over by the administration of former President Dr Mohamed Waheed with the intention of building a new Supreme Court complex on the premises.
While the previous administration had offered a plot in Hulhumale’ as an alternative, the developers felt the change would affect financing of the project.
The multi-million dollar housing project – a combination of commercial and social housing through a Public-Private Partnership model – was signed in May 2010 by the administration of former President Mohamed Nasheed with Apex Realty Pvt Ltd, a special purpose vehicle (SPV) or joint venture formed between Tata (65 percent) and SG18 Developers (35 percent).
Providing affordable housing to resolve the acute housing shortage in the capital was a core pledge of the Nasheed administration as well as the current Progressive Party of Maldives-led (PPM) government.
Contractual dispute
The Naadhee plot on Sosun Magu was among four plots of land in the capital awarded to the Tata subsidiary for construction of flats.
The Waheed administration’s decision to take over the plot was the source of the dispute with Tata, Muiz conceded yesterday, which has now been resolved after the economic council decided to give back the plot in accordance with the terms of the original agreement.
The government has agreed to purchase 20 percent of the flats constructed on the plot, he noted.
Discussions were meanwhile ongoing between the Supreme Court and the President’s Office on a new site for the apex court’s building, he said.
The flats in Gaakoshi and the old Arabiyya School site would have to be completed in 10 months and a year respectively, Muiz continued, while Tata has also agreed to construct 150 flats in Hulhumale’.
In May, Apex Realty announced that the company was prepared to resume work on the project as soon as the agreed upon amendments were incorporated into the contract.
“Apex Realty officials have undertaken multiple rounds of meetings with the economic council of the cabinet and the Ministry of Housing to find a mutually acceptable solution to contractual issues,” the company said in a press release.
“We are committed to the Maldives project and can start the project within 45 days after the final nod is received from the Housing Ministry and contract amendment is signed,” said Mr Sandeep Ahuja, Director at Apex.
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Initially this project was given to Nasheed close buddy and then they formed this JV company later with TATA.
When TATA came into the picture, again the entire contact was amended in favor of TATA.
Even Government has agreed by back the entire compound/ flats and then TATA was given all retail shops .
This was also very much one sided contract and Nasheed had taken a huge cut out of the deal .
Dispute with TATA?.....now there's a surprise! Are there any construction contracts in the Maldives that are not annulled, disputed or cancelled? Does the government of Maldives have the faintest idea of International Contracting Procedures?.....apparently not!
My advice to all Indian companies would be to avoid the Maldives like the plague.....or take the payment up front.
Have GMR been paid yet?
Hero.....it seems your mother dropped you on your head when you were a baby.
Hey hey! Dude! hero! You were supposed to read that story in late 2011! TATA is working for US now, don't you remember?! They're supposed to be persona gratas for now! Delete that comment before someone from TATA sees it and decides to pack up and leave!
Damn man! I dont believe this. Are you TRYING to make us lose our jobs, paatu?
Nasheed done a underhand deal with TATA also and original contract was given to Nasheed's buddy and they formed the JV with TATA.
@MissIndia. Its best that you start to advocate to stop raping in India. Even this month 6 years old Girl was raped by School teachers .
Pls advocate for the rights of children , women and try to advocate to provide clean water , basic health and education for the 60% of the population who live below poverty line and those people are earning a less than a dollar a day.
It's funny how Hero can go on about Nasheed's alleged corruption, but goes silent whenever he's asked to show proof.
What hero wants hero gets. As corrupted as he is does he know a Mosque was built at the LeGrande site of Odeon, by TATA and this government for the poor Bangladeshi's to pray during Ramadan:-)
Temporary mosque build at Odeon is not meant for Bagladhesi people only. I guess people who does not even bothered to go mosques will not know those things.
If you go and check the place , you will see 80% of the people who parsy there is Maldivian.
Vicitoms from Nasheed disease will try any thing to twist to turnish Maldives image.
TATA is not giving a donation here and this will be one of most profitable project they can ever get .
This contract is one sided
Why do you expect any company to work free for you??why would they invest that much huge amount without profit then what the **** yo talk about. Useless brain self can't do anything.If somebody try's to do something in ur country.U will use Islam as a weapon against good projects .
U r talking about rapes in India ??do u know population of India ??and percentage of rapes???
Maldives population is just nearly 3 Lakh and how many girls are abused at home itself.but they can't report due to family prestige.i know
Myself more then 10 cases but these ppl can't complain.just shut ur bloody mouth before commenting in such topics.