A Malaysian company has filed for arbitration against Maldives government over an alleged breach of a contract made to build a 25-story office building in reclaimed suburbs Hulhumale'.
WZR Property Group's Chairman Sazmi Miah told Malaysian medias that the former government contracted a project to build 25 floor office building in February 2016. The US$ 123 million contract was signed with the Finance Ministry during March 2016, he revealed.
The building was to be built on the property on which the Finance Ministry building is located. However, the government made the decision to relocate the construction of the new building to Hulhumale'. At the time, Finance Ministry had stated that the change of plans was based on advice from technical experts.
While 20% of the project has been completed under the agreement with WZR, the government has not made any payments to the company thus far, said Miah.
"After the government changed last year, I believe the new government remains undecided whether to continue with the project. The agreement was made with the former administration. The new government seems reluctant to move forward with the project. They are reluctant to pay us US$ 29 million for the work this company has done", said Miah.
Miah said several attempts have been made to arrange the payment, with a lot of letters sent to relevant authorities and several meetings with senior government officials. After their unsuccessful attempts, the company on Tuesday filed a case against Maldivian government at the Asian International Arbitration Centre, revealed Miah.
Miah added that he believed the Maldivian government would have to pay the company over US$ 40 million as compensation, in addition to the outstanding US$ 29 million, should the Maldivian government decide to terminate the agreement with the company.
"Agreements should be honored despite whatever government is in power. I hope this issue will be taken seriously, and a solution is offered", said Miah.
Design concept of 25 story office building contracted to WZR Property Group
