Business & Tourism – Page 13 – Minivan News

Tourist arrivals register 10 percent growth in three quarters of 2014

Tourist arrivals in the first three quarters of 2014 registered a 10.1 percent growth compared to the same period last year, reaching a total of 901,004 guests by the end of September, the Ministry of Tourism has revealed.

Visitors from Asia and Pacific countries accounted for 50 percent of all arrivals during the first nine months of the year.

However, the ministry noted in a statement last week that “the pace at which arrival from the region was increasing have slowed down since June.”

“While the region enjoyed a robust growth of 22.3 percent at the end of first two quarters of 2014, growth rate slowed down to 17.3 percent by the end of the third quarter of 2014,” the ministry explained.

“The region injected 53,454 tourists to the total arrivals to the country during the month of September, summing up the total arrivals from the region to 450,296 by the end of the period from January to September 2014.”

China (31.8 percent), India (3.5 percent), Japan (3.1 percent) and South Korea (2.7 percent) were the leading markets from Asia and the Pacific region, the ministry revealed, with Australia (1.6 percent) “emerging as a potential market from this region.”

“The Chinese market, registered a negative growth (-1.7 percent) for the first time in September 2014 since becoming the number one market in 2010. However, the market ended up with a healthy 14.8 percent growth at the end of the period from January to September 2014 with a total of 286,838 tourists.”

Tourist arrivals from Europe meanwhile increased 1.6 percent in the first three quarters compared to the same period in 2013, reaching 386,914 visitors.

“In terms of individual markets from Europe, leading markets were Germany (7.7 percent), the United Kingdom (7.4 percent), Russia (5.7 percent), Italy (4.8 percent) and France (4.2 percent),” the ministry revealed.

Arrivals from the Americas registered a strong growth of 25.2 percent in September with double digit growth rates recorded from all major markets in the region.

“With just a couple of hundred tourists less than that of Americas, Middle East followed closely behind bringing in a total of 28,641 tourists at the end of the period from January to September 2014 accounting for 3.2 percent of all arrivals during the period,” the ministry noted.

“This region also posted a heavy growth of 20.5 percent during the month of September 2014 ending the period with a robust 16.9 percent growth.”

Meanwhile, one new resort – Loama Resort Maldives on the island of Maamigili in Raa Atoll – and seven new guest houses opened during September.

“With these new additions, the total number of registered establishments reached 488 with 30,893 beds at the end of September 2014,” the ministry noted.

“While the total number of registered resorts increased to 112 with 23,917 beds and guest houses increased to 195 with 2,723 beds, number of hotels and safari vessels remained at 18 and 163 with 1,542 beds and 2,711 beds respectively by the end of September 2014. At the end of this period on average there were 292 establishment with 26,905 beds in operation.”

Statistics show that total bednights during the period was 5.4 million, with an average occupancy rate of 74.6 percent – an increase of 1.6 percent compared with the same period in 2013. Average duration of stay remained steady throughout the January to September period.

Quarterly economic bulletin

The Maldives Monetary Authority’s (MMA) quarterly economic bulletin released last week meanwhile observed that the “favourable growth in the tourism industry during the year suggests that the arrival of a million tourists during one calendar year is likely to be achieved in 2014 as well.”

“Reflecting the growth in bed nights, total tourism receipts grew by an annual 12 percent during the first six months of 2014 and totalled US$1.3 billion,” the central bank revealed.

While the market share of Europe fell from 51 percent in the first half of 2013 to 47 percent in the same period this year, the MMA noted that arrivals from Germany and the UK increased.

“In particular, the sustained growth of arrivals from UK, with a market share equivalent to 8 percent, reflects its economic revival to pre-crisis levels,” the bulletin suggested.

“Other markets in Europe, however, indicated sluggish or negative growth in tourist arrivals, contributing to the overall marginal increase in arrivals from Europe.”

The MMA also observed that in the past five years “the development of guesthouses as a low cost accommodation option for tourists in local inhabited islands has gained significant momentum.”

The authority noted that the number of guest houses in the industry is now over 2,400

“As at the end of June 2014, the number of registered beds in the [guest house] industry is recorded to be over 2,400. While the bed capacity of guesthouses accounted for a mere 2 percent of the bed capacity of the industry as a whole in 2010, it has now come to represent 8 percent of the total bed capacity in tourism establishments,” the bulletin stated.

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China to “favorably consider” financing Malé-Hulhulé bridge if project proves feasible

China will “favorably consider” providing financial support to the construction of Malé – Hulhulé bridge project, if the venture proves feasible, the Embassy of China has said.

Speaking at a brief press conference at the President’s Office, Charge d’affaires ad interim of China Embassy Mr Liu Qiang revealed details of the MOU signed between China President Xi Jingping and President Yameen Abdulla in September.

He also explained that a Chinese survey team will complete a preliminary feasibility study of the project within 40 days.

The preliminary study will be followed by a project feasibility study. Afterwards, a design plan will be determined and the two governments will explore options to finance the project.

The arrival of the preliminary feasibility study “shows that the Chinese government attaches great attention both to this project and to the friendly and cooperative relations between China and the Maldives,” said Qiang.

President Xi has previously expressed his hope that the bridge would be named the ‘China-Maldives Friendship Bridge’.

“If this is possible engineering-wise, and if nature allows it, we will do it,” Fisheries Minister Dr Mohamed Shainee said today.

The construction of a bridge was first announced during former President Maumoon Abdul Gayoom’s reelection campaign in 2008. President Mohamed Nasheed also pledged to link Malé to its suburb islands – Hulhumalé, Hulhulé, Villingili, and Gulhifalhu – via a bridge.

A 2011 feasibility study carried out by Ove Arup and Partners Hong Kong explored three options to link Malé and Hulhulé, through Funadhoo Island on the north, or through two different paths on the southeastern side of Malé over the surf point to the edge of the runway on Hulhulé.

The study said a floating bridge would be possible via Funadhoo and a fixed bridge may be possible via Malé’s Raalhugandu area.

The cost of the bridge may run between US$ 70 and 100 million, the study added. Tourism Minister Ahmed Adeeb revealed last week that the current survey – said to cost $3-4 million – will be covered through Chinese aid, of which 100 million Yuan (around MVR250 million or US$16 million) was pledged in August.

The following month President Xi became the first Chinese head of state to visit the Maldives, signing various MoUs as well as a preliminary contract agreement on the development of Ibrahim Nasir International Airport.

During the historic visit, President Yameen told his counterpart that he hoped to increase the number of Chinese visitors threefold before the end of his term. Chinese tourists already represents around one third of the market share.

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Government terminates Tatva waste management deal

The government has decided to terminate the agreement made with India–based Tatva Global Renewable Energy to provide waste management services in the capital Malé and nearby areas.

A company source said that the cabinet’s Economic Council informed them last month, citing unfavorable relations with the city council and the government’s preference for a state-owned service.

Speaking to Haveeru today, Economic Council Co-Chair and Tourism Minister Ahmed Adeeb confirmed the move to terminate the contract.

“The current government is looking to completely solve the waste management problem in the next two years. The previous government talked a lot about environmental issues but there was no actual work done to solve the issues,” said Adeeb.

The termination marks the latest in a number of terminated or renegotiated contracts signed under the government of Mohamed Nasheed, while current President Abdulla Yameen continues moves to improve the country’s investment climate.

City Mayor Mohamed Shihab informed Minivan News that Malé City Council had not been consulted over the decision despite being one of the parties involved in the project.

“The city council will continue on its waste management operations like it has been so far. The work so far has been done by MCC and not Tatva and this will not lead to any differences in the short run, however we would need to start looking into long term alternatives again,” said Shihab.

The council – dominated by the opposition Maldivian Democratic Party (MDP) – has this year introduced trash cans and fines for littering. Persistent conflicts with the central government, however, have continued.

The agreement with Tatva was presented as a solution to the capital’s ever-pressing waste management issues, with formal plans to generate power by recycling the waste and improving existing waste management systems.

However, the agreement faced delays following the fall of the MDP government in 2012, with renegotiations initiated as the new government of Dr Mohamed Waheed sought more “mutually beneficial” terms.

Mayor Shihab told Minivan News in May that the latest delay to the project involved the failure of the finance ministry to fund the repair of equipment required as part of the deal.

Investor Confidence

Similar problems have beset other Indian investors in recent years, with a US$190 million housing project in Malé by India’s TATA group delayed for more than two years pending renegotiation of the original terms agreed with Nasheed’s MDP government.

Shortly after the project stalled in 2012, officials from Apex Realty reportedly told Indian media of fears that local politics were derailing their investments in the Maldives.

Negotiations were concluded last month and the project resumed, with the Indian High Commission in Malé confirming that the deal now had “firm assurances from both Government of Maldives and TATA Housing”.

The most prominent Indian project curtailed by the change in government was the US$511 million lease to develop Ibrahim Nasir International Airport, terminated in November 2012 after the contract was declared void by Waheed’s cabinet.

After GMR challenged the legality of the move in a Singapore court of arbitration, the contract was deemed “valid and binding”, leaving the Government of Maldives liable for damages. Though the figure owed is yet to be determined by the court, it is expected to be considerably less than the US$1.4 billion claimed by GMR.

A 2012 report in India’s Business Standard brought forward concerns by Indian companies operating in the Maldives over political interference which they companies claimed is derailing their substantial investments in the country.

Since assuming the presidency in November 2013, Abdulla Yameen made the introduction of special economic zones the flagship of his legislative agenda, passing the SEZ Act in August.

With a minimum investment of US$150 million required for any investment projects in the special economic zones, Adeeb – also chairman of the SEZ investment board – has suggested that just one of the government’s proposed mega-projects could diversify the Maldives’ tourism-reliant economy.

While no major deals have yet been signed, a team of Chinese surveyors are expected in the country this week to carry out a survey for Malé-Hulhulé bridge – a project mooted by successive administrations.

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Addu City condemns government’s “obstruction” of guesthouse venture

Addu City Council has condemned the government’s alleged “obstruction” of its flagship guesthouse venture which aims to establish up to 2000 guesthouse beds.

“Government officials are spreading falsehoods to reduce investor confidence with the aim of obstructing Addu City Guesthouse Venture,” read a council statement released on Monday (October 20).

Condemning the “atrocity,” the council urged “government officials to stop such acts and facilitate an environment for this project – intended to bring development to the people – to succeed.”

The tourism ministry has denied the allegations, though the President’s Office has told local media it believes the scheme was designed purely to benefit members of the Maldivian Democratic Party (MDP).

The council on October 13 had handed over 29 plots of privately owned land to an India’s SG18 Realty to develop approximately 250 beds.

Companies from Denmark, Australia, and the United Arab Emirates have also expressed interest in building and operating guesthouses, the council has said.

A source close to the Addu City Council said government ministers had told investors foreigners they would not be allowed to operate and manage guesthouses.

However, State Minister for Tourism Hussein Lirar has dismissed Addu City Council’s allegations, and said he has to consult with a lawyer to definitively say if Maldivian laws and regulations bar foreigners from operating guesthouses.

“If foreigners get involved in guesthouse business, it narrows the opportunity for Maldivians to benefit,” he said.

An amendment to the Guesthouse Regulation of 2010 says licenses will be issued only to Maldivians, or partnerships without foreigners or companies registered in the Maldives as per the 1996 Company Act.

The Company Act says foreign companies may do business in the Maldives if they register in the country.

Meanwhile, President’s Office Spokesperson Ibrahim Muaz Ali has today said the Addu City Guesthouse Venture is a scheme by opposition MDP to benefit its supporters. All six Addu City Councilors belong to MDP.

“It seems to us as if it’s a plan to benefit individuals of a certain party. MDP members have participated in Addu City Guesthouse Venture meetings, and it seems from the photos and media that it is aimed to benefit party members. So it appears the project is designed for political gain,” he told newspaper Haveeru.

He claimed the council should have shared information on the venture with the government and the Local Government Authority if they sincerely intended the project to benefit all Addu residents. The council has previously said the Ministry of Tourism has been informed and Minister of Tourism Ahmed Adeeb has written a letter approving the venture.

The ministry has meanwhile revealed plans to establish guesthouse islands where multiple investors will be invited to build guesthouses on uninhabited islands.

The guesthouse island consists of three components, leasing of 5000 square feet plots for 25 rooms, 10,000 for 50 rooms and water villa plots for 100 rooms.

Foreigners can only invest in the 5,000 and 10,000 square feet plots if they form a joint venture company with a Maldivian. However, they will be allowed to bid for the water villa component without a Maldivian partner.

The Addu City Council in its statement said investors have expressed interest in developing guesthouses in all areas designated for guesthouse development in Addu.

Although landowners will have the option of operating guesthouses once they are built, the majority of landowners have no desire to manage them, Mayor Abdulla Sodiq previously told Minivan News.

The council has said the aim of the US$20million venture is to create jobs in the country’s second most populous region and increase living standards in Addu.

The region’s Gan International Airport will only become viable with 3,000 – 4,000 beds in operation in Addu, the council has said.

There are only two resorts in Addu at present and only a few additional islands for resort development. Even if all the remaining uninhabited islands are developed as resorts, it would not increase bed capacity to the required figure, the council said.

Hence, guesthouse tourism is key to ensuring the viability of the Gan International Airport, the council added.

Despite being the country’s second largest urban area, Addu is home to just 3.6 percent of the industry’s registered bed capacity.

The Maldives’ tourism industry, with over 100 resorts and nearly one million visitors per year, brings in approximately US$2 billion annually.

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US and Maldives hold first bilateral trade talks

The first official trade talks between the Maldives and US governments took place this morning at the Ministry of Foreign Affairs in Malé.

The meeting was the first bilateral discussion since the signing of the Trade and Investment Framework Agreement (TIFA) in 2009 to provide a forum in which bilateral talks can proceed.

“The first meeting discussed procedures for more robust engagement, as well as touched on topics such as labor, intellectual property, and the investment climate,” said the US following this morning’s meeting.

Minister of Economic Development Mohamed Saeed told the US delegation at today’s meetings of the government’s plans to diversify the economy away from its reliance on tourism, as well as the recent changes to the investment climate with the Special Economic Zones Act.

He also noted that further changes to legislation were planned that would ease foreign investment. The US State Department has previously noted that “the ambiguity of codified law acts as a damper to new investment” in the Maldives.

Despite the council not having met before today, total trade between the two countries has more than doubled between 2009 and 2013. Saeed told press today that the Maldives’ major export to the US was fish products, expressing his hope that Maldivian fishermen could take advantage of marketing opportunities within the US.

Speaking at a press conference after today’s meeting, Saeed said the government had plans to more than triple the current amount of fish exports to the US by 2018.

Part of the initial agreement, signed five years ago, stated that both parties would endeavour to hold talks at least once a year. The United States-Maldives Council on Trade and Investment – established by the TIFA – is designed to monitor trade flows, investigate new opportunities, and remove impediments to further investment.

Economic development minister Saeed represented the Maldives alongside State Minister for Economic Development Faris Maumoon, while the US delegation was led by Assistant Trade Representative for South Asia Michael Delaney along with Deputy Chief of Mission at the US Embassy in Colombo Andrew Mann.

“Our team comes from multiple U.S. government agencies and has been looking forward to returning to the Maldives to learn more about both the trade and investment conditions and the labor environment,” said Delaney in a press release from the Colombo embassy.

The press release noted that the US has TIFA agreements with almost 50 countries in every region of the world.

(SOURCE: U.S. Census Bureau, Foreign Trade)

Not traditionally a key contributor to the Maldives’ billion dollar tourism industry, US visitors represented less than 2 percent of the market share in 2013.

US engagement with the Maldives has traditionally concerned foreign assistance to enhance maritime security, counter terrorism, and counter narcotics cooperation with Maldivian forces.

Officers and crew from the USS Rodney M Davis visited the Maldives earlier this month, with Vice Admiral Robert Thomas noting the critical nature of the Indian Ocean to regional security.

Rumours of a Status of Forces Agreement – opening up the possibility of US forces being stationed in the Maldives – surfaced in 2013, before incoming President Abdulla Yameen announced that any such deal would be likely to damage relations with neighbouring countries.

The US has also pledged to help the Maldives adapt to the negative effects of global climate change, pledging US$7.2 million (MVR111 million) for a global climate change adaptation project last year.

2013 also saw US private equity firm Blackstone acquire both the Maldives’ major seaplane operators for an undisclosed sum, as well as the introduction of the US designed PISCES border control system.

The PISCES system was utilised in the controversial arrest of alleged Russian hacker Roman Seleznyov by US security personnel while in the Maldives in July. Seleznyov was subsequently transported to the US via Guam where he awaits trial.

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MACL ordered to pay nearly MVR1 million in pay discrimination damages

The Employment Tribunal has ordered Maldives Airports Company Ltd. (MACL) to pay nearly MVR1 million (US $65,000) in damages over discrimination in salaries.

The case lodged in 2012 by 40 air traffic controllers alleged MACL had failed to provide adequate training, changed the company’s policy on salaries without prior notice, and forced employees to work without leave.

The Employment Tribunal however dismissed these claims, but said MACL had allocated different salaries to employees doing the same work, contravening Article 4 of the Employment Act.

The three member tribunal ordered MACL to pay the 40 air traffic controllers MVR987,000 in damages by October 27.

Lawyer Ibrahim Riffath hailed the verdict as “historic and significant victory” and noted the case was the first class action suit of its kind in the Maldives.

He applauded the 40 staff for their bravery in raising the issues in court while continuing to work at MACL.

“The compensation claim is significant especially since MACL is a major company in charge of the country’s most important airport. This case highlights the importance of workers fighting for their rights regardless of the company they work for,” he said.

An air traffic controller who wished to remain anonymous told Minivan News that MACL had resolved several issues raised in the tribunal case, such as work without leave, after the case was lodged.

“We had to go far this far because MACL refused to acknowledge its shortcomings,” he said.

“I call on other workers to raise any issue they may have with the Employment Tribunal. Do not remain frustrated at work. Use your rights,” he said.

During the presidential elections in October 2013, over 95 percent of air traffic controllers called in sick en masse over pay grievances, safety concerns at the airport and the Supreme Court’s delay of the presidential run-off election.

Several flights were delayed and MACL had to call in officers from Maldives National Defense Force (MNDF) to operate the air traffic control tower.

They had demanded the reinstatement of a professional grading system, adherence to International Civil Aviation Organisation (ICAO), and the holding of the presidential run-off election which had been suspended by the Supreme Court.

“This was not a political issue,” an air traffic controller said at the time. “But now because we’ve lost trust in and cannot negotiate with the current government, [the strike has taken a political direction].”

In March, hundreds of MACL employees went on a four hour strike over the poor quality of food and cuts to annual company bonuses.

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Bridge survey to start on Friday, says Adeeb

A surveys for the Malé-Hulhulé bridge project will begin on Friday, Tourism Minister Ahmed Adeeb has revealed.

After signing an MoU regarding promotion of the ‘mega project’ during the visit of Chinese President Xi Jinpeng last month, a team from China will arrive on Thursday to carry out the survey.

“After that, we will obtain the required finance for project and start practical work on the bridge,” said Adeeb, also Chair of the cabinet’s Economic Council.

“I see the survey starting within one month from signing of Memorandum of Understanding with Chinese government as a huge victory,” he told Haveeru.

The survey will determine the pier points for the proposed bridge which will link the capital island Malé with the airport island of Hulhulé.

The project has been mooted by successive governments, with previous plans considering a bridge connecting the airport island with the Rahlugandhu area on the south-eastern corner of Malé, the artificial beach area, or the northen harbour via Funadhoo island.

Local media have confirmed that Chinese aid will cover the expense of the survey – reported to cost $3-4 million.

The government has insisted that the project can be completed within two years, with the Ministry of Economic Development suggesting it will help to ease urban congestion in the capital island – one of the most densely populated in the world.

President Abdulla Yameen confirmed that China had pledged to support the bridge project during his official state visit in August, promising a feasibility study before the end of the year.

During the historic visit of President Jinpeng last month – the first by a Chinese head of state to the Maldives, the leader suggested the finished project might be named the ‘China-Maldives Friendship Bridge’.

Diplomatic ties between the two nations have grown in the wake of the large numbers of Chinese tourists visiting the Maldives – now thirty percent of total arrivals.

While visiting the Maldives, President Xi reiterated his calls for the Maldives to become involved in the creation of a 21st century maritime silk road linking China to the east coast of Africa and the Mediterranean.

Chinese news agency Xinhua reported yesterday that China’s maritime ‘Silk Route’ would pass through the Ihavandhippolhu Integrated Development Project – or ‘iHavan’ – in the northernmost atoll in the Maldives.

An preliminary contract agreement on the development of Ibrahim Nasir International Airport – based on Hulhulé island – was also signed between the two nations during September’s visit.

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Exit permits required for foreign workers from today

Foreign workers in the Maldives will be required to obtain permission from their employer before leaving the country from today (October 19).

The exit permit requirement – announced via local media on Thursday (October 16) – is now being implemented, with expatriate workers required to present a form, signed by their employer, at airport immigration.

“The procedure is simple,” explained the immigration department’s Information Officer Hassan Khaleel.

“The employer needs to fill out the form and hand it over to the employee. The employee is required to submit it to the immigration counter at the time of departure.”

The abuse of exit permit systems elsewhere has led to condemnation from international human rights groups, with local NGO Transparency Maldives today expressing concern over the scheme’s use in the Maldives.

While exact figures are unavailable, the number of expatriate workers in the country has been estimated to be as high as 200,000 – equivalent to two thirds of the local population.

Although the majority of these workers are Bangladeshi, Bangladeshi High Commissioner Rear Admiral A.S.M.A Awal has told Minivan News he has not yet been informed of the new exit permit procedures.

During the first week of the permit’s use, allowances will be made due to the short notice given regarding exit permit procedure, explained Khaleel.

“It will not be very strict for the first week. Airport staff will ask for the form and may call employers to check for a period of time.”

He explained that the introduction of the permit system had come after requests from employers concerned at the number of expatriate workers leaving the country without permission.

The illegal practice of withholding the passports of migrant workers – described as “rampant” in the Maldives by the US State Department – may also be lessened as a result of the new permit scheme, added Khaleel.

Potential for abuse

Advocacy and communications manager at TM, Aiman Rasheed, has expressed concern that the exit permits will exacerbate the well-documented abuses within the immigration system.

“Requiring an exit permit to depart from Maldives may have the same effect as withholding travel documents, that is, the employer has control of the mobility of the worker,” explained Rasheed.

“While this is an infringement on the freedom of movement for workers, it also presents opportunities for perpetuation of bondage, trafficking, etc, by limiting movement of the worker.”

Long viewed as a country with a poor record on combatting human trafficking, the Maldives was this year removed from the US State Department’s Trafficking in Persons (TIP) report watchlist.

A government report in 2011 has revealed the scale of the problem, with human trafficking said to be the Maldives’ second most lucrative industry after tourism – worth an estimated US$123 million a year. In 2013, Bangladeshi authorities temporarily halted migration of its nationals, blaming the failure of local authorities to address the problem.

After four consecutive years on the TIP watchlist, the Maldives avoided potential sanctions this year after the introduction of the Anti-trafficking Act in December 2013.

“Serious problems in anti-trafficking law enforcement and victim protection remained,” said the TIP report, which noted that an unknown number expatriate workers in the country experienced forced labour.

Exit permit systems are also operated in other nations with large numbers of expatriate workers – such the UAE and Qatar, although Qatar announced earlier this year that it was to abolish the practice after pressure from human rights groups.

Human Rights Watch noted last year that the Qatari system “unfairly shackles foreign workers to their Qatari employers, opening them up to unfair treatment and exploitation.”

Khaleel told Minivan News today that the immigration department was aware of the potential for abuse inherent within the system.

“If there are any disputes employers should approach the Labour Relations Authority. They are responsible for disputes and breaches of contract,” he explained.

Any workers requiring further information on the exit permit system can contact airport immigration on 332 0452 or 794 0452.

The exit permit form can be downloaded here.

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STO to import oil, staples and pharmaceuticals only

State wholesaler State Trading Organization (STO) will focus solely on importing fuel, food staples and pharmaceuticals, the Economic Council has announced at a press conference today.

The move is part of the government’s decision to move STO out of the retail business in order to encourage private businesses, Economic Development Minister Mohamed Saeed said.

However, the STO has recently launched a new brand of groceries called Noofahi as well as announcing plans to expand the supermarket at the STO Trading Center in Malé.

Tourism Minister Ahmed Adeeb added that STO will be restructured and will build new fuel storage facilities, establish a shipping fleet to import oil and will take measures to increase fuel security.

Meanwhile, STO MD Adam Azim today announced a MVR1.25 reduction on a liter of petrol and diesel following a request by President Abdulla Yameen.

Adeeb at today’s press conference pledged to further decrease fuel prices and said the government is looking into ways to reduce prices on jet fuel for domestic transport

Minister of Youth Mohamed Maleeh Jamal said the “historic” reduction would address rising inflation.

The Economic Council also said a German research vessel has found hydrocarbon source rocks in the Maldives and said the government is working with a Japan’s Mitsui and Taisei, and China’s Beijing Urban Construction Group (BUCG) to upgrade the Ibrahim Nasir International Airport (INIA).

The Maldives intends to ask for a preferential trade mechanism with China following partnership in China’s maritime Silk Road.

Finance Minister Abdulla Jihad said the Economic Council will hold monthly meetings with state owned enterprises to address challenges, facilitate financing, and strengthen management.

Oil exploration

Fisheries Minister Dr Mohamed Shainee said a preliminary assessment of hydrocarbons by Germany’s Hamburg University had brought “happy signals.”

The research team will handover detailed assessment in the first quarter of 2015, he said.

Although the presence of hydrocarbon source rocks have been confirmed, further research and analysis is required to determine if there are hydrocarbon reservoirs in the Maldives and their exact locations, Shainee explained.

The inner atoll ocean basins and atoll slopes have been examined, and new 3D seismic data will provide a more complete picture of presence of hydrocarbons, he said.

The government is setting up renewable energy alternatives in Malé and Addu, but such sources can only cater to 30 percent of Maldivian energy requirements, Shainee said.

Meanwhile, Sri Lankan, Indian, Norwegian, and British companies have expressed interest in assisting Maldives in oil exploration.

Approximately 30 percent of Maldives GDP is spent on fuel imports.

Airport Development

Adeeb revealed today that the Maldives is working with Japan’s Mitsui and Taisei, and China’s BUCG on a master plan for airport development.

The government intends to secure a US$600 million loan from Japan Bank for International Cooperation (JBIC) and China Exim Bank for the venture.

Once loans are sanctioned, the work will be contracted out, he added. In the meantime, the government will rehabilitate the existing runway.

Economic Development Minister Mohamed Saeed noted an increase in Chinese imports to Maldives, especially in heavy machinery, and said the Economic Council is working on establishing a preferential trade mechanism.

A technical team from China is due to visit the Maldives to undertake a survey for the Malé – Hulhulé bridge in the near future, the council said.

The council also revealed that the Maldives has signed a maritime labor convention, and intends to establish an open ship registry in order to expand maritime businesses such as offshore shipping and to increase luxury cruise ship arrivals in the country.

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