Parliament passes bill on leasing of uninhabited islands and lagoons

The Parliament's committee has passed a bill outlining the regulations for leasing and allocating uninhabited islands and lagoons for various purposes.

The bill was introduced to Parliament on behalf of the government by Saudullah Hilmy, the Member of Parliament for Thinadhoo North. It underwent review by the Committee of the Whole House. During Wednesday's parliamentary session, the bill was passed with a majority of 47 members voting in favor. Twelve members voted against the legislation.

Comprising eight chapters and 75 articles, the bill stipulates that uninhabited islands may be leased for tourism, industrial activities, fisheries, and agriculture. Furthermore, it allows for leasing for other economic and social purposes, as well as for state requirements.

Under these regulations, islands leased for industrial and economic purposes are priced at an annual rent of MVR 3 per square meter. For islands allocated for fisheries and agricultural use, the annual rent is set at MVR 2.50 per square meter. Meanwhile, islands leased for social purposes will carry an annual rent of MVR 2 per square meter.

Regarding the leasing of lagoons, the bill stipulates that such areas may be allocated for large-scale and medium-scale industrial activities. Furthermore, leases may be granted for large-scale economic projects, as well as for aquaculture and related operations.

The rental rate for lagoons leased for such purposes is set at MVR 3 per square meter. Meanwhile, lagoons allocated for fishing-related activities are leased at a rate of 50 laari per square meter.

The bill stipulates that the President holds the authority to designate uninhabited islands and lagoons for various purposes. While it grants the power to lease these properties for an initial period of 21 years, the bill also provides ministries and councils the discretion to extend the lease duration to 50 years.

In addition to leasing, the bill outlines the specific circumstances and procedures under which islands may be granted under the 'Varuvaa' system.

The bill stipulates that the relevant ministry or local council shall have the authority to take punitive action against those who violate the Act or its accompanying regulations, with the severity of the measures to be determined by the nature of the offense.

Under these regulations, violations involving uninhabited islands leased under the "Varuvaa" system may incur fines of up to MVR 500,000, depending on the severity of the offense. Furthermore, offenses related to leased lagoons or uninhabited islands are subject to fines reaching MVR 1 million based on the gravity of the violation, while offenses involving any other categories of uninhabited islands may result in fines of up to MVR 500,000.