Pearl Atoll Private Limited has initiated the practical work for its project to have an island resort developed at Feydhoo Finolhu.

This aspect of the project was launched by Police Commissioner Ahmed Areef, at an event held on Tuesday.

The project was assigned to Pearl Atoll with a 50-year lease, without a bidding process, for an excess of USD four million (about MVR 61 million).

Pearl Atoll is a joint-venture between China’s Shenzhen Sunpen Investments, Hong Kong’s Mirich Investments, and a local businessman.

The Feydhoo Finolhu was previously managed by the Police Welfare Company, which earlier said that its development into an island resort would be financially ‘beneficial’.

Tourism Minister said last December that the project would rake in over USD 80 million for the Police Welfare Company.

An amendment to the Tourism Act in 2016 allows a number of properties to be leased out without a bidding process. This includes 11 islands and two lagoons.

Former President Mohamed Nasheed had then called on the state to return Feydhoo Finolhu to its previous status of being a picnic island for those near the capital city.