Friday, January 25, 2008

Govt. reserves right to cancel agreement – Dr. Shaugy

Minister of Tourism and Civil Aviation Dr. Mahmoud Shaugy has revealed that if no work is carried out during the period specified in the contract for the construction of the City Hotel in Fuvahmulak, the government has the option to cancel the contract agreement with contractors of the Fuvahmulak City Hotel.

Speaking to Miadhu Dr. Mahmoud Shaugy said that the City Hotel should be completed within 18 months and that the 18 month period will expire in April this year.

“The construction should be completed within 18 months, contract period will be over in coming April, if no work is carried out during the construction period granted then the government has the option to cancel the agreement” said Dr. Shaugy.

As per the contract agreement when the construction period is over, rental charges will be levied and as such Dr. Shaugy says rental charges will be levied as stated in the contract.

“Normally if work is carried out during the construction period then we extend the construction period, but we do not grant extension periods of 12 to 15 months, at a time we only give an extension of 3 month or 6 month, we will monitor to see if work is going on during the first 3 months and if work is going on then we will extend another 3 months, although we do extend the construction period, we will commence levying the rental charges as stated in the contract” said Dr. Shaugy.

The work so far carried out regarding the construction of the City Hotel is the erection of the fence which marks the boundary of land provided for the construction of the Hotel. The construction of the Hotel is carried out by One and Half Degree Maldives Company and due to long delay in the commencement of the work the company has been fined by the Tourism Ministry.

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