Business & Tourism – Page 14 – Minivan News

Addu City guesthouse venture kicks off

Southern Addu City’s flagship guesthouse venture kicked off today with the council handing over 29 plots of land to an Indian company for the development of approximately 250 beds.

Speaking to Minivan News, Mayor Abdulla ‘Sobe’ Sodiq said SG18 Realty intends to develop between 10 and 15 room guesthouses on each plot of privately owned land.

Of the 29 plots, 17 are on the island of Hithadhoo, 10 in Maradhoo, and two in the Maradhoo-Feydhoo ward.

Landowners will receive land rent and ten percent of net profits from the guesthouses, Sobe said.

Guesthouse development on inhabited islands was a key election pledge of the opposition Maldivian Democratic Party, to which all members of the Addu City Council belong.

Opposition leader and former President Mohamed Nasheed was also present at today’s ceremony.

The US$20 million Addu City Guesthouse Venture aims to develop 2000 guesthouse beds, five diving centers, six water sports centers, six restaurants and a sailing club in the Maldives’ second most populous region.

In addition to SG18 Realty, a Danish and a Dubai company have also expressed interest in developing guesthouses in Addu City, Sodiq said. The council is now evaluating the two remaining proposals.

The foreign developers have also expressed interest in managing and operating guesthouses, which could lead to the transfer of tourism money abroad, Sodiq admitted.

But the mayor said guesthouse tourism would allow locals to establish tourism related businesses such as laundry services, food and beverage, and entertainment.

“This is a bed and breakfast model. Even if foreign companies manage and operate the guesthouses, there will be a multitude of local businesses, such as restaurants, laundry services, souvenir shops, water sports, and diving centers. These businesses will benefit community and put money in the pockets of locals,” he said.

Once the buildings are completed, landowners would also have the opportunity to manage and operate businesses if they pay back 20 or 30 percent of the property value, Sodiq said.

However, majority of landowners do not want to operate the businesses, he said.

Addu City Council also intends to create jobs through the venture and will conduct training programs to train tour guides, lifeguards, and staff to manage guesthouses, he added.

“This project will benefit everyone in Addu, not only particular people,” Sodiq said.

“Most Addu City men spend their working lives outside their home island in resorts around the country. They only come home once or twice a year, for their children’s birthdays. They miss their children’s first steps, first day at school and sometimes do not even make it home for the birth of their children.”

“People are desperate. This venture is an opportunity for Addu resort workers to return home, work in their home islands, own or operate their own businesses.”

The guesthouse venture will also make Addu City’s Gan International Airport viable, Sodiq said.

At present there is only one guesthouse with eight beds registered in Addu City.

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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MMPRC to further boost Chinese visitors with tourism roadshow

The Maldives Marketing and PR Corporation (MMPRC) has today launched a three-city tour of China in an effort to further boost the number of Chinese tourists.

Taking in Chongqing, Chengdu, and Guangzhou over the next five days, twelve industry groups will also take part in the roadshow

“This road show is the perfect platform to establish a more extensive contact with the China travel trade,” read an MMPRC press release today.

“It is also an opportunity for the Chinese market to be educated on Maldives, its serene beauty and the delicate surroundings.”

After becoming the market leader in terms of visitors to the Maldives in 2011, Chinese visitors now represent nearly one third of all arrivals, totalling 331,000 in 2013.

“Maldives is now positioned to seize the market opportunity created by China’s increasing demand for luxury outbound travel. Hence, this is a great opportunity to promote the destination and to continue to strengthen the image of Maldives in the Chinese Market,” said the MMPRC.

The rapid growth in tourist arrivals has preceded a strengthening of diplomatic relations, with Xi Jinpeng becoming the first Chinese head of state to visit the Maldives last month.

Among a number of MoUs signed during the visit was an agreement to introduce mechanisms to deal with the issue of safety and security of Chinese tourists in the Maldives.

While a Chinese national died last month following a motorcycle accident in the capital Malé, the most common cause of injuries and fatalities among Chinese visitors are related to water sports.

Responding to anecdotal reports of Chinese visitors’ eating habits while visiting the Maldives, Jinpeng was said to have called upon his countrymen to “eat less instant noodles and more local seafood”.

The Maldives’ President Abdulla Yameen expressed his hope that Chinese arrivals would increase three-fold over the next four years.

“Hosting this road show will result in continuous boost in arrivals from China in the years to come,” said the MMPRC today.

The MMPRC conducted a similar event in China in 2012, while a similar event was carried out by the MMPRC in Australia last May in an attempt to break
into the relatively untouched Australian market.

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MIFCO yellow fin tuna receives Friends of the Sea eco-label

No additional reporting by missing journalist Ahmed Rilwan

The state-owned Maldives Industrial Fisheries Company’s (MIFCO) hand line fleet has received certification from the NGO Friends of the Sea, a leading international certification project for products from sustainable fisheries and aquaculture.

The certification “authorises the tuna processor and exporter to carry the eco-label for yellowfin tuna from its certified vessels operating in the Western Indian Ocean,” Undercurrent News reported on Friday (October 3).

“Friend of the Sea audit requirements are very strict so we are proud to have obtained the certification,” MIFCO CEO Adhly Ismail was quoted as saying.

“We will continue to rely on Friend of the Sea to increase the number of certified vessels.”

Last week, sustainable fisheries consultants MacAlister Elliott & Partners trained and appointed a Marine Stewardship Council (MSC) auditor in the Maldives.

The auditor, Seema Ali, will specialise in MSC assessment programmes, awarding sustainable fisheries certification to local companies in a move aimed to support employment in the Maldives.

The Maldives’ skipjack tuna fisheries industry received the MSC certification in 2012 for its low-impact pole-and-line technique where each wild fish is caught individually to reduce by-catch.

MSC Chain of Custody (CoC) surveillance audits of the Maldives skipjack tuna industry were conducted recently by Kat Collinson of MacAlister Elliott.

CoC standards for seafood traceability ensures the MSC eco-label is only displayed on seafood from sustainable sources, explained MacAlister Elliott.

The Maldivian fishing industry has declined in recent years, falling behind tourism and construction as the country’s third-largest industry.

While approximately 185,000 tonnes of fish were caught in 2006, the number had dropped to about 70,000 tonnes in 2011.

According to the latest monthly economic review from the Maldives Monetary Authority, fish purchases in August 2014 rose compared to the previous month and stood at 2,457.2 metric tonnes.

“However, a 48% decline was recorded compared to the corresponding period of 2013,” the central bank explained.

“In August 2014, both the volume and earnings from fish export fell compared to the corresponding month of 2013. As such, the volume of fish exports fell by 56%, while the earnings on fish exports declined by 48% during this period. The decline in the volume and earnings of fi sh exports was contributed mainly by the fall in export of frozen skipjack tuna.”

During the past five years, the value of the nation’s fisheries industry declined from MVR489 million (US$31.7 million) to MVR321 million (US$20.8 million) with a corresponding fall of 3.3 percent of the economy to 1.1 percent in 2012.

UK Supermarket chain Sainsbury announced earlier this year that it had introduced the country’s first certified sustainable tuna sandwich using the MSC eco-label.

“By choosing tuna from the Maldives tuna fishery, Sainsbury’s is supporting artisanal fishermen who have made an international difference to the way the Indian Ocean fishery is managed,” the Marine Steward Council’s Senior Country Manager Toby Middleton said in May.

Meanwhile, the Ministry of Islamic Affairs recently started awarding halal certification to local fisheries companies in order to open up Islamic markets for export.

The move followed notification from the European Union that extension of the duty-free status of imported fish from the Maldives would be rejected due to he country’s failure to comply with international conventions concerning freedom of religion.

The Maldives exports 40 percent of its US$100 million fishing industry to the EU, its single largest export partner by value.

Maldives’ Fisheries Minister Ahmed Shafeeu said the government’s application for a year’s extension under the ‘GSP Plus’ programme was declined as it had not ratified all 27 required international conventions.

He warned that the sudden imposing of a 14- 20 percent duty on fish imports would lose the Maldives its competitive advantage over the larger fishing fleets of nearby Sri Lanka and Thailand, and reduce profits to “a marginal value.”

Until January 2014, fish exports were duty-free under the Generalised System of Preferences (GSP) program, a non-reciprocal trade agreement extended to developing countries.

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Tourism key for community development, says government on World Tourism Day

No additional reporting by missing journalist Ahmed Rilwan

The tourism industry holds the key for youth employment and community development said senior government figures as the Maldives celebrated World Tourism Day.

“I call upon Maldivian youth to enter the tourism sector with renewed courage,” said President Abdulla Yameen, pledging greater opportunities for young people within the sector.

“To this end, to increase income and job opportunities in the north, God willing a further five resorts will be put up for bidding during this year and awarded for development,” he continued.

The industry – which accounts for 25 percent of GDP – continues to grow rapidly based on just over one hundred island resorts currently in operation. Tourist arrivals increased by 11 percent between August 2013 and August 2014, numbering 806,000.

Attempts at community based tourism have expanded rapidly in recent years, with the number of guest houses based within local communities growing from 22 registered facilities in 2009 to just under 200 today.

With tourism and community development the central theme of this year’s World Tourism Day, Minister of Tourism Ahmed Adeeb lauded the Maldives’ industry as an example of how tourism can develop local communities.

Adeeb cited the current government’s innovation in mid-market tourism – the integrated resort project model – as a way to “responsibly diversify the tourism product of Maldives to the mid-market segment”.

“One of the fundamental elements of the Maldivian tourism industry is that the views and aspirations of the host community are taken into account as their support and genuine involvement enriches the holiday experience for the travelers visiting the Maldives from across the globe”.

The integrated resort model – pioneered with the recently launched Thumburi resort project – is designed to make the industry more accessible to small and medium sized enterprises, though some have questioned how the scheme will benefit local communities.

People-based development

World Tourism Day 2014 was celebrated in the Maldives with boduberu performances at all the country’s airports as well as environmental activities at a number of resorts, including reef cleaning and tree planting.

A bicycle ride was also organised in Hulhumalé to raise awareness of the use of environmentally friendly forms of transport.

The ride was organised by the Tourism Adaptation Project which will include 10 investment schemes to “climate proof” infrastructure in the tourism industry, explained Adeeb in the World Tourism Day supplement published for the occasion.

The supplement also included statements from UN Secretary General Ban Ki-Moon and World Tourism Organisation Secretary General Taleb Rifai.

“Tourism is a people-based economic activity built on social interaction, and as such can only prosper if it engages the local population by contributing to social values such as participation, education and enhanced local governance,” said Rifai.

“At the same time, there can be no real tourism development if such development damages in any way the values and the culture of host communities or the socio-economic benefits generated by the tourism sector do not trickle down to the community level.”

In his article for the supplement, Adeeb noted that the government’s flagship special economic zones bill would accelerate the development of the atolls and pave the way to initiate mega projects in different regions of the Maldives and will be a platform to expand our tourism industry”.

President Yameen last week reiterated his determination to provide equitable development throughout the 26 atolls, during a ceremony announcing reliable electricity would be provided to all inhabited islands during 2015.

A UNDP human development report released in June noted the growing disparities between the region surrounding the capital and the outer atolls. It described the tourism industry as an “oligarchy”.

While acknowledging the recent growth of the guest house industry, the report argues that the bulk of the luxury resort industry provides little opportunity for local small and medium enterprises.

Recent statistics showed that Malé’s Kaafu Atoll was home to 39.9 percent of the tourism industry’s bed capacity, while Seenu Atoll – home to country’s second largest urban population – had just 3.6 percent.

Following the launch of an online petition in April calling for development of the tourism industry in Haa Dhaalu – the country’s second northernmost atoll – government minister’s pledged equal development of the industry.

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Local sustainable fisheries auditor appointed in Maldives

Sustainable fisheries consultants MacAlister Elliott & Partners have trained and appointed a Marine Stewardship Council (MSC) auditor in the Maldives.

Seema Ali will specialise in MSC assessment programmes, awarding sustainable fisheries certification to local companies in a move aimed to support employment in the Maldives.

“It is great to have someone based in the Maldives who can take on new MSC assessment programmes and also manage existing ones, for example through surveillance audits,” said Kat Collinson of MacAlister Elliott.

The Maldives’ skipjack tuna fishery is the first Indian Ocean tuna fishery to receive the MSC certification in 2012 for its low-impact technique where each wild fish is caught individually to reduce by-catch.

“Seema has embraced the role with great enthusiasm and she will also be well placed to take on new and existing MSC assessments in other parts of the Indian Ocean such as Thailand, Sri Lanka, Malaysia and Indonesia,” Collinson added.

Collinson undertook MSC Chain of Custody (CoC) surveillance audits of the Maldives skipjack tuna pole and line fishery while in the Maldives. CoC standards for seafood traceability ensures the MSC ecolabel is only displayed on seafood from sustainable sources, explained MacAlister Elliott.

Traditionally the Maldives’ primary industry, the fishing industry has declined in recent years, falling behind tourism and construction as the country’s third-largest industry.

The volume of fish catch in the country has been steadily declining for the past seven years. While approximately 185,000 tonnes of fish were caught in 2006, the number had dropped to about 70,000 tonnes in 2011.

Statistics released by the Maldives Monetary Authority this month showed that fish purchases declined by 44 percent to 2,124.7 metric tonnes between July 2013 and July 2014.

The Ministry of Islamic Affairs has recently started awarding halal certification to local fisheries companies in order to open up Islamic markets for export.

UK Supermarket chain Sainsbury announced earlier this year that it had introduced the country’s first certified sustainable tuna sandwich using the MSC eco-label.

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Potential of Islamic finance yet to be fully explored in Maldives, suggests MMA governor

The scope and potential of Islamic finance, insurance, and banking in the Maldives is “yet to be fully explored”, suggests Maldives Monetary Authority (MMA) Governor Dr Azeema Adam.

Speaking at the opening ceremony of the first ‘Maldives Islamic Banking and Finance Industry Conference’ yesterday, Dr Azeema said Islamic finance “provides a springboard” to generate innovative ideas to cater to the financing needs of the domestic economy.

“The phenomenal growth of Islamic insurance and Islamic banking in the Maldives in the last few years suggest that there is still significant market to capture,” the central bank’s governor said in her keynote address at the conference.

“There is a need for financial institutions in the Maldives to strive to reach to every corner of the Maldives; every island in the country. There is a need to provide banking services to the unbanked,” said Azeema.

Islamic banking and capital market services were introduced in the Maldives in 2011, with the opening of the Maldives Islamic Bank (MIB).

Providing banking services to all inhabited islands “might not always be profitable,” Azeema continued, requiring innovation within the Maldivian financial sector.

“Financial products in the Maldives need to transcend the oceans and reach each and every person in the country, including those in the most isolated and remote islands.”

To support the growth of Islamic finance, Azeema recommended development of a “comprehensive legal and regulatory framework specific to Islamic finance”.

The MMA has formed a ‘Shariah Advisory Council’ to ensure Shariah compliance, she continued, while legislation on Islamic banking and Takaful has been drafted.

The governor expressed hope that laws on the “two key components of Islamic finance” could be enacted before the end of the year.

“Viable alternative”

Under Islamic Shariah, any risk-free or guaranteed rate of return on a loan or investment is considered riba (usury or interest), which is prohibited in Islam.

Conventional insurance is also prohibited in Islam because of forbidden elements such as riba.

Azeema observed that from a modest beginning in the 1970s Islamic finance was now a global industry with a total asset value of US$2 trillion.

“At its current pace, the growth in Islamic finance stands sharply ahead of conventional finance which experienced significant de-leveraging and slowdown in the wake of the global financial crisis,” she noted.

“One of the reasons for the phenomenal growth of Islamic finance is the perception that it is more ethical, compared to conventional finance, which is traditionally viewed as predatory when needed.”

While the industry represented a niche market for Muslims, Azeema said it has since “transformed to a viable alternative for consumers of convention finance, irrespective of their religious beliefs.”

“The basic tenets of Islamic finance, like the idea of sharing profits and losses, investments only in ethically permissible areas, and the inseparable link of finance with real and productive economic activities, are understandably appealing to all,” she explained.

“It is this humane face that is required to encourage and reward those Maldivians who work hard. The individual and self-employed entrepreneurs who needs a financier to realise their dreams; the creative youth who need a bank to fund their ideas; the small and medium enterprises who need access to easy financing; and the large enterprises who need a wide range of investment and financial products.”

In addition to its ability to cater to the diverse groups in the Maldivian economy, Adam suggested Islamic finance could “bring about a more equitable society; a responsible and hardworking society; a society where individual creativity and free enterprise thrive.”

“Long journey”

The governor suggested that competition among financial products could help correct “market failures” and was welcome in the Maldives.

Islamic finance could also be “a reliable alternative source of funding” for investors, she added.

The introduction of Islamic finance has been “a long journey,” Azeema said.

While Amana Takaful started selling insurance in 2003, the Maldives Islamic Bank commenced operations in March 2011.

“The strong mobilisation of deposits that followed the commencement of MIB confirmed the latent demand for Islamic finance and the need for an institution offering Islamic financial services,” she observed.

Since 2011, she noted, housing finance based on Shariah principles have been made available while Allied Insurance was offering takaful products through their window named Ayady Takaful.

The Bank of Maldives has meanwhile been given approval to establish an Islamic banking window, she added.

“The development of an Islamic Capital Market has also been initiated with one listed Shari’ah compliant equity,” she said.

In March, Deputy Islamic Minister Dr Aishath Muneeza said that, in addition to the introduction of Islamic fund management this year, the government planned to “introduce an Islamic finance centre that will not only provide offshore Islamic financial services, but this centre will act as the Islamic finance hub for the whole South Asia region.”

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GMR surprised with decision to give airport development to Chinese firm

Indian infrastructure company GMR has told media of its surprise that the development of Ibrahim Nasir International Airport (INIA) has been given to a Chinese firm.

“Sources in the GMR expressed surprise at the move by the Maldives government as it has entered in a new contract for construction work at airport without paying damages as suggested by the tribunal,” wrote the Economic Times today.

The preliminary contract agreement for the development of the airport was one of eight MoUs signed between the Chinese and Maldivian governments during the recent presidential visit by the Chinese President Xi Jinpeng.

The terms of the agreements have not yet been released to the media, though it was revealed that the new contract to develop the airport was given to Beijing Urban Construction Company Limited.

President Xi’s visit to the Maldives – part of his South Asia – tour was reported to have added to Indian concerns regarding Chinese ambitions in the region.

India’s GMR recently won the arbitration case filed against the Maldivian government claiming compensation for the premature termination of its airport development agreement made in 2012 during former President Mohamed Nasheed’s administration.

The company’s significant development plans included the construction of a new terminal and investment plans in excess of US$500 million.

The two phase arbitration case will now focus on determining the compensation owed by the government, with GMR claiming US$1.4 billion, a figure which amounts to around half the Maldives’ Gross Domestic Product (GDP).

Arbitration relations

Speaking about the arbitration case, Attorney General (AG) Mohamed Anil said that the compensation has been limited by a clause inserted during the original agreement, suggesting that the amount will not go up to the full amount being claimed.

Tourism Minister Ahmed Adeeb has since assured that the government has the capacity to pay the compensation.

“Our economy will grow with the special economic zone bill, and our government will become rich, we will overcome our budget deficit and god willing we will be able to pay any amount we have to,” he said shortly after the ruling in June.

GMR initiated the tribunal at a Singaporean Court after former President Dr Mohamed Waheed’s administration concluded that the GMR contract was void, giving the company seven days to leave the airport.

Speaking at a press conference, then AG Azima Shukoor stated that the decision to terminate the contract was reached after considering “technical, financial and economic” issues surrounding the agreement.

In response, GMR released a statement saying that the cabinet’s decision was “unilateral and completely irrational.”

The GMR case also appeared to prompt a cooling in diplomatic relations between India and the Maldives, with India tightening visa regulations for Maldivian travelers claiming that that decision had been made to draw attention to the treatment of expatriate workers within the Maldives.

While relations have improved during the presidency of Abdulla Yameen, Indian officials were reported to have expressed concern over President Xi’s visit this week – the first by a Chinese head of state to the Maldives.

“We’ve been off the ball a bit on the Maldives, and things are tricky again,” an official told the Telegraph. “The Chinese President’s visit to the Maldives is emblematic of that simmering unease.”

During his visit President Xi urged the Maldives to become part of his 21st century maritime silk road project, as well as signing an MoU for the promotion of a bridge between Malé and Hulhulé islands. Xi expressed his hope that the bridge would be named the ‘China-Maldives Friendship Bridge’

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Agreements on bridge and airport penned during Chinese president’s visit

The historic visit of Chinese President Xi Jinpeng today saw MoUs signed on the development of Ibrahim Nasir International Airport and promoting the construction of the Male-Hulhulé bridge.

Following a lively welcoming ceremony – featuring a Chinese dragon, Maldivian dancing, and a 21 gun salute – President Xi and President Abdulla Yameen observed the signing of eight MoUs.

The visit has also seen the signing of a preliminary contract agreement on the development of Ibrahim Nasir International Airport.

Xi’s arrival marks the first visit to the Maldives by a Chinese president in the 42 years since diplomatic relations between the two countries were established in October, 1972.

The most notable MoU concerned the promoting the construction of the long-awaited Male-Hulhulé Bridge – with a replica awaiting President Xi’s arrival at Republic Square this morning.

A foreign ministry statement has said that the Chinese government will “favourably consider” providing financial support for the project.

Both presidents also launched two Chinese funded and implemented projects concerning housing in Hulhumalé and a link road in Laamu Atoll. The housing project is to be financed through concessional loans, while the 15.1km Laamu road project will be constructed through non-reimbursable aid financing.

Other MoUs were signed on health sector promotion, establishing a joint committee on trade and economic cooperation, strengthening cooperation between the foreign ministries of both countries, and establishing a joint mechanism on dealing with the issue of safety and security of Chinese tourists visiting the Maldives.

President Yameen also revealed that further development of the tourism industry had been discussed during today’s talks, expressing hope that Chinese arrivals would increase three-fold over the next four years. Chinese tourists currently make up around 30 percent of all arrivals to the country.

During a joint press conference on Monday at the President’s Office, President Yameen thanked China for its assistance, stating that “graduation from a less developed country has come with enormous challenges and hardships.”

“As a small island state, we are at a disadvantaged position in global commerce and trade. Our socio-economic development forecast changed dramatically with the status of a middle income country”.

“At such a crucial juncture in our development, it is indeed a source of major encouragement and inspiration that one of our most trusted economic partners is willing to support our national effort to transform our economy, bringing happiness to our youthful population and promoting trade and investment,” he stated.

New phase

In addition to the Maldivian President, President Xi Jinping and his delegation have also met with Speaker of Parliament Abdulla Maseeh Mohamed and other senior government officials.

Chinese Ambassador to the Maldives Wang Fukang – signatory of a number of today’s MoUs – told Chinese media that, after decades of development ties, the bilateral relationship had entered a new phase

“China has helped with several construction projects in the Maldives, including the foreign ministry building, and the national museum. This has been totally free of cost. We have also helped the country build a thousand residential homes,” said Wang.

A press release from the President’s Office reveals that the Housing Project’s Phase II will be funded through concessional loan financing by the Government of China, and implemented by the China Machinery Engineering Corporation.

Yameen also praised the New Silk Road project, reported by Chinese state media to be pass the intended site of the Ihavandhippolhu Integrated Development Project – or ‘iHavan’ – in the northernmost atoll in the Maldives.

“Maldives is now honoured to feature among China’s partners in building a 21st Century Maritime Silk Road – a unique vision of President Xi which will bring Asian neighbours closer together,” said Yameen at this morning’s press conference.

In an op-ed published in local media ahead of the visit, President Xi called for the Maldives “to get actively involved in building the 21st century maritime Silk Road by leveraging its own strength.”

“China looks forward to working with Maldives to speedily translate this cooperation initiative into reality so as to boost the development and prosperity of all countries and the rise of Asia,” wrote President Xi.

The foreign ministry reports that the Maldives is prepared to actively participate in relevant cooperation with regard to the establishment of the Silk Road, and that the two countries further agreed to cooperate in the fields of maritime issues, economy, and security.

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Indian high commission welcomes renegotiation of TATA housing deal

The Indian High Commission has welcomed the successful renegotiation of the TATA Housing development project in Malé.

“The positive developments in the TATA Housing project would definitely encourage more such investments from Indian businesses into Maldives,” read a press release from the Indian High Commission today.

Work on residential apartments will now resume on the Gaakoshi and Arabiyya sites, after a two year delay as the government sought to renegotiate the original terms of the contract.

“Government of Maldives has also given a commitment to transfer back the two sites – Naadhee and Odean, which were taken back by Government for specific purposes, and provide other timely clearances to the company,” the statement continued

The initial agreement was signed in May 2010 between the government of Mohamed Nasheed and Apex Realty Pvt Ltd – a joint venture between TATA Housing Development and SG 18 Realty.

Work commenced on the premises, but was later halted due to pending resolution of numerous contractual issues.

“Despite a two-year delay, due to certain external and unavoidable circumstances resulting in hugely enhanced cost implications, M/s Apex Realty, where Tata Housing is a majority shareholder, is committed to deliver the residential apartments to the people and government of Maldives.”

The addendum agreement was signed today between TATA Housing Managing Director and CEO Mr Brotin Banerjee and the Maldives Ministry of Housing and Infrastructure.

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.

“The agreement has firm assurances from both Government of Maldives and TATA Housing,” read today’s high commission statement.

Relations between the Maldives and India cooled following the premature termination of the GMR airport development deal – also signed under the Nasheed government – in late 2012.

After being reviewed in a Singapore court of arbitration, the GMR deal was recently ruled to have been legal and binding, leaving the Government of Maldives liable for damages incurred by the Indian company.

Since assuming the presidency in November 2013, President Abdulla Yameen has sought to improve investor relations, expressing his hope that Indian companies continue to invest in the Maldives.

The current government’s controversial flagship legislation – the recently passed Special Economic Zones Act – is intended to attract further foreign investment.

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