Day: June 24, 2010

Bids of up to Rf1 billion for airport, while Jumhoory Party announces ”special gathering” to express disapproval

Indian company GMR Infrastructure has said it is confident it will win the bid for Male’ International Airport, after offering US$78 million (Rf1 billion) upfront.

“Considering the offers, we will get the highest marks. We will make the payments and take over the operations of the airport in March,” newspaper Haveeru reported one official as saying.

Finance Minister Ali Hashim disclosed the bids at a function today.

Bids at a glance:

  • GMR-KLIA: US$78 million upfront and one percent of the total profit in the first year (until 2014), and 10 percent of the profit from 2015 to 2035. GMR would also pay 15 percent of fuel trade revenues to the government in the first four years and 27 percent from 2015 to 2035.
  • Turkish TAV Airports Holdings Company and French Airports De Paris: US$7 million (RF89.95 million) upfront payment, with 31 percent of the total profit until 2014 and 29.5 percent from 2015 to 2035. The consortium offered 16.5 percent of the profits from fuel trade.
  • Swiss Flughafen Zurich AG and GVK Airport Developers offered US$27 million (Rf346.95 million), along with 27 percent of the total profit in the first four years and nine percent of the profit from 2015 to 2035. The consortium said it would pay nine percent of fuel revenues to the government.

The Jumhoory Party (JP), led by Gasim ‘Buruma’ Ibrahim, has meanwhile announced that it will conduct a ”special gathering” to express disapproval at the government’s decision to privatise Male’ international airport.

Ali Shareef, secretary general of JP, said the special gathering would be conducted in collaboration with other NGOs and political parties.

”Male’ international airport was built by our forefathers and it is one of the assets of the state,” said Shareef. ”There are many concerns over privatising the airport, and we want to express our opinions during this special gathering.”

Shareef said the transaction could cause disruption and “national security issues”, and would decrease government revenue.

‘There is no transparency in this transaction,” he said. ”We are very concerned over the issue.”

He said that the gathering would be “a peaceful gathering.”

”We want to gather people and make them aware of what’s happening, and tell them the consequences of it,” he said. ”There is the potential for many problems if foreigners control the country’s main entrance.”

He said that the venue, date and time of the gathering was yet to be advised.

”We are in discussion with other parties involved and will decide the venue and date very soon,” he said.

Moosa Rameez, Spokesperson of JP, said members of the party and people of the country were concerned over the issue.

”Male’ international airport is a asset of the state which was built by the people,” said Moosa. ”We do not want it to be given to a foreign party.”

The Dhivehi Rayyithunge Party (DRP) has also expressed concerned over the issue.

Vice President and Spokesman for the opposition Dhivehi Rayyithunge Party (DRP) Ibrahim Shareef said the party will not honour “shady deals made according to vested interests” if the party comes to power in 2013, referring to the government’s privatising of the country’s airports.

Shareef also expressed concern that the government’s efforts to privatise state assets, such as the airport, were not occurring with parliament approval.

Shareef said the airport was currently “making the government money”, and the asking price it had set “is so low. [The deal] is riddled with corruption,” he alleged. “If the government has nothing to hide, it has nothing to lose from asking parliament.”

Minister for Civil Aviation and Chairman of the Privatisation Committee Mahmoud Razee recently told Minivan News that ”as far as I understand we are proceeding according to the public finance act which is currently in force. Parliament legislates but actual delivery is up to the executive.”

It is the opposition’s “prerogative to say what they wish, but the reason why experienced and reliable companies are involved in this bid is because they believe that this is a viable project.”

The Male’ airport privatisation deal would be for 25 years, extendable by another 10 years, and would require a minimum level of investment towards upgrading the airport in the first three years to meet a certain level of service.

This week government shortlisted three parties to run Male’ International airport and has it would select one by the end of the week.

The parties include Aéroports de Paris Management Company of France (ADP) and Turkish company TAV Airports Holding Company, Indian company GVK Airport Developers in partnership with Swiss Flughafen Zurich AG, and GMR-KLIA.

Press secretary for the president, Mohamed Zuhair did not respond to Minivan News at time of press.

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Maldives signs agreement with University of Milano-Bicocca for scientific and academic programs at Magoodhoo, Faafu atoll

The government has signed a ‘memorandum of understanding’ (MoU) agreement with the University of Milano-Bicocca to implement scientific and
academic programs at an outpost of the university in Magoodhoo island, Faafu atoll.

With the agreement coming into effect the university will:
– Cover expenses related to research at the outpost;
– Provide all research equipment, instrumentation and other materials;
– Provide subsidised tuition fees for local students;
– Arrange two scholarships from various funding institutions.

For local students studying at the university:
– the university will organise Italian language classes for primary and secondary students at the island on a no fee basis.

At the agreement ceremony, President Nasheed and delegates from the university discussed how to make the outpost more effective, and how to implement the university programmes on the island as soon as possible.

The agreement was signed on behalf of the government by the minister of state for foreign affairs Ahmed Naseem, and on behalf of the university, rector Marcello Fontanesi.

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Qatar further expands routes across Europe and Asia

Qatar Airways has announced the launch of six new routes in Europe and Asia in 2010, servicing Phuket, Hanoi, Nice, Bucharest, Budapest and Brussels.

Qatar already connects Male’ International Airport with hubs including Doha, Heathrow, Dubai, Abu Dhabi, Frankfurt and Cairo.

Qatar Airways CEO Akbar Al Baker said the new routes were underserved “and so are excellent opportunities for us to tap into.”

“We spend a lot of time diligently analysing new route opportunities and I am pleased to say that the routes being announced today will not only open up new markets, but also strengthen our network strategy over our Doha hub,” he said.

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Australian PM replaced by deputy in sudden party coup

Australian Prime Minister Kevin Rudd was disposed last night by his party, with his deputy Julia Gillard being sworn in today as the country’s new leader, and first female prime minister.

Rudd, who is on good terms with President Mohamed Nasheed, was elected in a landslide win in 2007 as leader of the Labor Party, but fell victim to factions within the party after his opinion polls plummeted, in what Australian Associated Press described as “a cloak-and-dagger plot hatched by shadowy backroom operators.”

“I have given my absolute all,” Rudd said, struggling to retain his composure in his final speech two hours after he stood down.

“I was elected by the Australian people as the prime minister… to bring back a fair go for all Australians. I have given my absolute best to do that,” he said, adding that he was less proud of “blubbering”.

“Having said all that folks, we’ve gotta zip,” he concluded.

Gillard gave credit to Rudd “for leading the nation in such difficult times and keeping people in work,’’ but said the government “was losing its way.”

“I love this country and I was not going to sit idly by and watch an incoming opposition cut health, cut education and smash rights at work,” she said.

Australian commentators observed that Rudd’s popularity divebombed during a damaging fight with Australia’s monolithic mining industry over a proposed 40 percent tax on their profits.

However many acknowledged surprise at the sheer speed of Rudd’s eviction – none more than Rudd himself, who visibly struggled through his exit speech.

Gillard appeared slightly discontented at the shadowy nature of her arrival at the helm and accepted the role somewhat grudgingly, remarking that she would not move into the Prime Minister’s official residence until she was voted into power in the upcoming Australian election.

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Majlis undermining executive power: Eva Abdulla

The Majlis is undermining the constitutional powers of the executive branch, said MDP MP for Galolhu Uthuru, Eva Abdulla, during yesterday’s Majlis session.

Abdulla gave examples from draft amendments to the Civil Service Act, the Public Finance Act, the Police Act and the newly proposed Atolls Capital bill, which she said were designed to narrow policy options for the executive branch. She condemned the amendments and the new bill. The mandate of the Majlis is to make independent institutions responsible, said Abdulla, but it is now attempting to manage those institutions.

Last week, the Civil Service Act was amended to make Civil Service Commission appointments through the Majlis, which also rejected the government proposed amendments to the Decentralisation Act, and passed a law mandating a change of island capitals on Shaviyani and Kaafu atolls.

Maria Ahmed Didi, MDP chairperson, has said that the encroachments by the Majlis were unconstitutional, and the MDP has claimed that the aim of such amendments and laws was to stop the government’s development projects. However, the DRP has said the amendments and new bills were designed to make government more accountable.

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Islamic education top priority: Moosa Maniku

Islamic education is more highly prioritised than at any other time in Maldivian history, said MDP parliamentary group leader Moosa Maniku during a Majlis debate on a DRP bill to mandate the teaching of Islam and Dhivehi in grades 11 and 12 in the country’s schools.

The DRP bill was proposed for political purposes, said Maniku, and he condemned it. “The constitution very strongly stipulates that Islam as the Maldivian religion and Dhivehi as the Maldivian language shall be protected,” he said. “That’s for all Maldivians, and not for the government alone or for students alone. We do not need another law to respect Islam and Dhivehi in this country. There is no time in our history when Islamic scholars were as free as they are now.”

Laws which aim to limit the policy options for the government are unacceptable, said Maniku, and there are rights which have to be given to people but they cannot be delivered as there is no legal infrastructure for that to happen. It will be better if the Majlis could help people in realising those rights, he said, and the current debate was a waste of the Majlis’ precious time.

DRP members spoke in favour of the bill during the debate. Abdul Azeez Jamaal Aboobakur, a co-sponsor of the bill , said that he had submitted the bill in a personal capacity and his aim was not political. It is important to protect the main pillars of Maldivian society from imminent threats and dangers, he said.

The bill was accepted for further debate and sent to the Majlis committee for national development.

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MDP government misleads the public and lacks sincerity: DRP leader Thasmeen

The current MDP administration misleads the people and lacks sincerity, said DRP MP and leader Ahmed Thasmeen Ali at a public DRP meeting at the Artificial Beach in Male. The previous administration was the exact opposite and did not mislead the public and was sincere and cared more for the people, Thasmeen said.

After almost two years in office, the MDP government had failed to fulfil any of its electoral pledges, the DRP leader said, and he listed the broken pledges – higher electricity tariffs, reductions to civil servants pay, increases in the cost of living, and reduced job opportunities.

Thasmeen said the current government is very propagandist, and its most recent effort was to discredit DRP’s honorary leader Maumoon Abdul Gayyoom by labelling him as corrupt. Thasmeen defended his former boss as a very sincere and honest man.

At the meeting, Ali Waheed, DRP’s deputy leader, said that former President Maumoon ruled the country for 30 years with sincerity, and the DRP will take legal action against anyone who says otherwise. The meeting also condemned the article by the New York Times alleging corruption of US$400 million during the previous administration and also criticised Miadhu Daily for carrying the story in the local media.

Ibrahim Shareef, another deputy leader of the party, criticised Ahmed Abdulla, CEO of Miadhu Daily, and he said the MDP administration was dictatorial.

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Jumhooree Party to Protest Airport Privatisation: Gasim

The Jumhooree party, lead by Gasim Ibrahim, MP for Maamingili and one of the richest men in the Maldives, is protesting against government plans to privatise the Male’ International Airport.

The party will issue a joint declaration with other political parties and NGOs regarding the matter. The party, together with other political parties, will also hold a demonstration against privatisation. The decision was made during its council meeting held on 22 June 2010.

The airport was a major people’s investment and a key asset, said Gasim who claims that the money needed for the development could be easily raised through financial institutions without privatisation. Gasim also mentioned security concerns for the airport.

Gasim also said such decisions should not be taken just to get some money for the government budget. He warned that once the term of the contract expires, the company would sell the airport back to government at a price that government can never pay, and the company would own the airport forever.

Gasim called for people to object the decision by the government. The Jumhooree party has sent a letter to President Nasheed informing him of its concerns, and the Jumhooree party has also made a submission to the Majlis about the matter.

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Five people arrested for assault in Gan island, Laamu atoll

Five people have been arrested for attacking two people with sharp objects at 7.55 p.m. last night at Thundee ward in Gan island, Laamu atoll.

The victims were 21 years and 20 years old, and both suffered serious injuries to the face and head. They were taken to Gan Regional Hospital by the police.

The young men were coming out of the mosque after prayers when a group of people on seven motorcycles attacked them, say the police, who are searching for others believed to have been involved in the assault.

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