The Finance Regulations, within the framework of the Private Sector Initiative, have been amended to allow private parties to submit proposals for projects contributing to the country’s development targets, even outside the context of a specific government-designated project or a formal request for proposals.

While the regulations have been amended to allow for the submission of unsolicited bids for development projects, the rules previously in place for similar proposals have been repealed by the current administration. The Ministry of Finance gazetted the amended rules on Thursday.

According to the amended rules, works can be awarded directly, under initiatives from the private sector, only after an official who is deemed financially responsible for projects qualifies the reasons for awarding the work to the Minister of Finance.

Projects moving forward with foreign aid or concessional loans, and government-appointed projects, which are undertaken without undergoing a bidding process, will be entrusted to an appointee designated by the President in consultation with the Cabinet or a Cabinet committee.

The Cabinet or a Cabinet committee may then decide to proceed with the proposal initiated by the private sector and such a project can only be carried out if the proposal:

  • Relates to a project that does not apply to a specific administration project but can achieve the development objectives of the administration
  • Facilitates the achievement of the objectives outlined in the administration’s Strategic Development Plan in an innovative and efficient manner

The rules also describe the circumstances in which such proposals cannot be submitted. If the project included in the proposal is one already announced or planned for by the government prior to the submission of the proposal, such a proposal will not be accepted. Additionally, the proposed project should not be one that the administration has initiated in terms of sourcing for contractors.

Proposals by private individuals are required to be submitted to Invest Maldives, a company under the Ministry of Economic Development and Trade.

According to the gazetted rules, the evaluation of such proposals will be conducted in three stages where during the final stage, a company, to carry out the investment or work, will be registered and the agreement will be signed with the government.