An arbitration has been filed against the state at Singapore International Arbitration Center by Prime Capital Maldives Limited over the development agreement of K. Fushidhiggaru.
The Attorney General's Office on Monday said the government has been notified of an arbitration claim which alleges that the government violated the terms of a joint venture agreement between Prime Capital Maldives Limited and Ministry of Finance and Treasury signed on January 18, 2013. The claim was submitted at the Singapore-based arbitration center on Wednesday last week, said the Attorney General's Office.
According to the notice of arbitration sent by Prime Capital Maldives Limited, the arbitration was filed as the government had failed to issue Fushidhiggaru lagoon for the reclamation and development of 27 islands as per the agreement between the company and the government of Maldives, the Attorney General's Office revealed.
While the company is seeking compensation for damages and the cost of arbitration, maintaining the confidentiality of the case has been conditioned upon the government. Disclosing further information could result in the Arbitration Tribunal taking action against the government, said the AG Office.