Tag: tata housing

Indian high commission welcomes renegotiation of TATA housing deal

The Indian High Commission has welcomed the successful renegotiation of the TATA Housing development project in Malé.

“The positive developments in the TATA Housing project would definitely encourage more such investments from Indian businesses into Maldives,” read a press release from the Indian High Commission today.

Work on residential apartments will now resume on the Gaakoshi and Arabiyya sites, after a two year delay as the government sought to renegotiate the original terms of the contract.

“Government of Maldives has also given a commitment to transfer back the two sites – Naadhee  and Odean, which were taken back by Government for specific purposes, and provide other timely clearances to the company,” the statement continued

The initial agreement was signed in May 2010 between the government of Mohamed Nasheed and Apex Realty Pvt Ltd – a joint venture between TATA Housing Development and SG 18 Realty.

Work commenced on the premises, but was later halted due to pending resolution of numerous contractual issues.

“Despite a two-year delay, due to certain external and unavoidable circumstances resulting in hugely enhanced cost implications, M/s Apex Realty, where Tata Housing is a majority shareholder, is committed to deliver the residential apartments to the people and government of Maldives.”

The addendum agreement was signed today between TATA Housing Managing Director and CEO Mr Brotin Banerjee and the Maldives Ministry of Housing and Infrastructure.

Shortly after the project stalled in 2012, officials from Apex Realty reportedly told Indian media of fears that local politics were derailing their investments in the Maldives.

“The agreement has firm assurances from both Government of Maldives and TATA Housing,” read today’s high commission statement.

Relations between the Maldives and India cooled following the premature termination of the GMR airport development deal – also signed under the Nasheed government – in late 2012.

After being reviewed in a Singapore court of arbitration, the GMR deal was recently ruled to have been legal and binding, leaving the Government of Maldives liable for damages incurred by the Indian company.

Since assuming the presidency in November 2013, President Abdulla Yameen has sought to improve investor relations, expressing his hope that Indian companies continue to invest in the Maldives.

The current government’s controversial flagship legislation – the recently passed Special Economic Zones Act – is intended to attract further foreign investment.

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Housing minister hopes to sign amended TATA contract next week

Minister of Housing and Infrastructure Dr Mohamed Muiz has expressed hope that the amended contract with Indian infrastructure giant TATA Housing regarding the construction of two apartment complexes can be signed next week.

“Based on the most recent communication, we estimate that the amended contract will be signed next week, that is if no further reasons for delays come up,” Muiz told local media.

He stated that the company was expected to commence work on the two sites within a period of 45 days after the signing of the contract, and to complete the projects within a year.

The deal – first signed in 2010 – has faced repeated delays after successive governments sought amendments to the original contract.

“In addition to this project, there is also work on an additional 150 flats that need to be started,” Muizzu said yesterday.

The minister explained that previous delays in signing the agreement had occurred due to the actions of TATA Housing.

After deliberation by the cabinet’s economic council in July, the Housing Ministry had announced intentions of resuming the projects under a revised contract.

The government of Maldives contracted Apex Realty Pvt Ltd – a joint venture between TATA Housing Development and SG 18 Realty – to construct residential apartment complexes on four separate sites in capital Malé city in May 2010.

Work commenced on the Gaakoshi site and former Arabiyya School premises, but was later halted due to pending resolution of numerous contractual issues.

While reasons suggested for the delay included shortages in construction materials and the incumbent government’s reclamation of land plots included in the original deal, TATA was reported in Indian media as expressing concern that local politics were endangering their investments.

Apex Realty also released a press statement in May 2014 indicating its intention to commence work on the apartment complexes within 45 days of getting the final approval from the government of Maldives for the amended contract.

“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,” Apex Realty Director Sandeep Ahuja stated at the time.

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Tata Housing group agrees to revised contract, ready to resume construction

After resolving contractual disputes with the government, Apex Realty has announced it is prepared to resume work on its Malé housing projects as soon as the agreed amendments are introduced into the contract.

“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.

The project – a joint venture between the Maldives Housing Ministry and the housing arm of multinational conglomerate Tata – was agreed under the government of Mohamed Nasheed in 2011.

The combination of commercial and social housing was due to be completed within three years before stalling following disputes with the new government over the terms of the contract.

One of the four sites given to Apex for development was subsequently earmarked by the new administration as the site of a new Supreme Court, leading to reportedly heated negotiations.

“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,” read an Apex press release today.

The Apex group revealed that it had indicated its acceptance of the revised terms to the Housing Ministry.

“Apex Realty is now waiting for Ministry of Housing to enter into an amendment to the contract to record the modified terms.  Apex Realty is willing to recommence the work and finish the project in the shortest possible time.”

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