Day: December 19, 2011

GMR hosts groundbreaking ceremony for new terminal

Indian infrastructure giant GMR on Monday hosted a groundbreaking ceremony on Hulhule’ for the new terminal of Ibrahim Nasir International Airport (INIA).

President Mohamed Nasheed, GMR Chairman G M Rao, Malaysia Airports Managing Director Sri Bashir Ahmad and assorted officials dug the first hole for the new terminal in front of journalists both local and Indian.

Aircraft belonging to local airlines flew overhead, with seaplanes from Maldivian Air Taxi and Trans Maldivian Airways dropping flowers onto the newly-reclaimed land.

Addressing the gathered dignitaries, officials, journalists and GMR staff, Rao said the company was conscious that INIA was the gateway to the Maldives.

Thoughout the ages the development of human civilisation had been spurred by transport links, Rao said, promising that the new airport would be a hub for economic development and modernisation.

“Since we have come here the love and affection of Maldivians has been of great comfort to us,” Rao said. “As an infrastructure developer GMR is the custodian of the asset it builds, while the asset belongs to the nation and its people. For the last year, we have fulfilled every one of our commitments to the government of the Maldives, and we intend to respect and fulfill every remaining commitment.”

Dehli Airport was ranked 101 in quality in the 40-50 million passenger category by the Airports Council International in Geneva when GMR took it over, Rao said. “Now it is ranked number four. And soon after completing the new airport at Hyderbad, it was ranked first in the 5-15 million passenger category.”

The bidding process for the airport, which has been attacked by opposition parties in the Maldives, “was awarded in a transparent manner in collaboration with the International Finance Corporation (IFC) of the World Bank,” Rao said.

“It was a tough global competition, and [the bid] was finally awarded to GMR. It is a privilege to be entrusted with the responsibility for developing the airport, and GMR promises to deliver the airport well with the timeline.”

GMR had begun sending batches of 29 local employees every two months to India for on-the-job training, he said, and had committed to sponsoring 10 students every year to study engineering disciplines in India.

During the political crisis in Egypt earlier this year, “GMR safely transported 160 Maldivians from Bombay to the Maldives in a special aircraft, after they were evacuated from Egypt,” Rao said.

The company had also taken four teachers from Iskander school to India to see best practices in education, Rao said, adding that there were “various other initiatives in the pipeline.”

“Whatever the challenges, we are committed to delivering the promise we have made to your nation. GMR will find solution to every problem,” he said.

In his own address, President Nasheed said he wished to assure GMR that the government was “200 percent behind your contract, and every single other contract the government has signed with any other foreign party in this country. Not just contracts signed by our government, but also contracts that any ruler of the Maldives has signed with any party. We will honour it.”

The opposition aligned Dhivehi Qaumee Party (DQP) recently filed a successful Civil Court case against the government claiming that GMR’s charging of a US$25 airport development charge for departing passengers, as stipulated in the concession agreement, was illegal. GMR took a stock price hit on the Mumbai stock exchange following the announcement.

GMR was also the subject of protests last weekend and a proposal in parliament for local businesses to be “defended” from the airport developer. The Alpha MVKB duty free shop at the airport was forcibly vacated by GMR and Customs officials eight months after GMR’s original notice. Rulings from the Civil and High courts upheld GMR’s right to terminate the shop’s contract, however company CEO Ibrahim ‘MVK’ Shafeeq launched the protest under the slogan ‘Go GMR Go!’.

Speaking to Minivan News, Rao said that the ADC was part of the agreement with the Maldives, and noted that President Nasheed had said the government would honour the agreement.

As for the stock market impact, “We are not working for the stock market, and we are very confident in the government of the Maldives.”

He noted that the developer had had similar experiences with unhappy concessionaires when redeveloping Delhi Airport, and that this was part of the transition process that would be vindicated when the new terminal was opened.

President Nasheed meanwhile also addressed the gathering in Dhivehi, stating that it he wished to impress upon his people “the magnitude” of the occasion in their language.

There were, he said, “people [in the country] who want to go back to the time when the islanders remained locked in their islands, with no [communications or transportation network].”

If the citizens wanted to have the development they desired, Nasheed said, “we have to be connected and think broadly, take ideas outside our islands, outside our atolls, and outside the borders of the Maldives.

”Today you all have heard about the death of the North Korean leader, Kim Jong Il – that is because you are connected to the outside world.”

“No sincere person” could speak out against developing the airport, Nasheed said.

“More than one million tourists visited the Maldives this year to spend their holiday on the beach – that beach is what we sell in the Maldives. But many years have passed since this airport was first built, and day by day the need to improve the airport and its services has kept increasing.”

Arriving tourists were spending in some cases over US$1000 per night for a bed, and should enter the country through an adequate airport, he said: “the tourists begin their holiday at the airport.”

Nasheed expressed surprise at the hostility to the airport development charge, noting that only a few Maldivians frequently travelled outside the country.

“Why should anyone be worried about paying US$25 to develop the airport from the money they spend on their weekend in Sri Lanka?” he asked.

He noted that the Maldives had always welcomed foreign investors, and that there was no harm in them doing so.

“The gov understands the need for foreign investment and we are aware of the role that foreign investors play in development of this country,” Nasheed said.

“A fair amount of our assets are foreign owned, even now, and today I am happy to say we are again increasing our list of assets by one with the groundbreaking ceremony we are having today.”

The new terminal is due to be completed in June 2014, and will be run by GMR under a 25 year concession agreement extendable for a further 10 years. GMR holds a 77 percent stake in the venture, with the remaining 23 percent held by Malaysian Airports Holdings Berhad (MAHB). The US$400 million project is the single largest foreign investment in the history of the Maldives.

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Kamadhoo boduberu group Yamak wins Baa Atoll challenge

Baa atoll Kamadhoo Yamak boduberu group won the Baa Atoll Youth Boduberu Challenge last Saturday, organised by Four Seasons in partnership with boduberu group Varutha and Villa Television (VTV).

Six islands from Baa atoll took part in the competition, including Dhonfanu, Maalhos, Kihaadhoo, Eydhafushi and Dharavandhoo. Varutha held workshops for atoll youth in preparation for the competition.

The competition celebrated Baa Atoll’s designation as a UNESCO World Biosphere Reserve earlier this year.

Yamak group won the competition with 876 points and were awarded Rf10,000. Four Seasons donated and additional Rf100,000 to the island for a community project, yet to be selected, Haveeru reports.

The Youth Ministry donated Rf30,000 of musical equipment to Yamak group in appreciation of and support for its talent and interest in traditional activities.

Four Seasons announced that it plans to extent the competition to Noonu, Raa and Lhaviyani atoll boduberu groups next year.

Yamak said it will put its winnings towards building a stage on Kamadhoo, and will work with island residents to devise an appropriate community project.

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NSC to summon protest organisers

The National Security Committee will summon organisers of the December 23 protest to ‘defend Islam’ for questioning along with security personnel.

The individuals will be summoned on either Wednesday or Thursday of this week.

The committee decided to summon Abdulla Mohamed, President of Adhaalath Party Sheikh Imran Abdulla, members of the Maldivian Democratic Party’s (MDP) activist association organising the counter protest, Commissioner of Police Ahmed Faseeh and Chief of the Maldives National Defence Force (MNDF) Major General Moosa Ali Jaleel.

According to Haveeru, protest organisers will be questioned on their planning process and purposes while security personnel will be asked to describe preparations for the protest and to assess whether the protest can actually be held.

The committee intends to clarify and calm the situation, however today’s meeting was heated, reports Haveeru.

Progressive Party of Maldives (PPM) and Galolhu-South MP Ahmed Mahloof described the intended protest as a peaceful gathering with no intentions for unrest.

Hulhu-Henveyru MP and transitory chairman of MDP ‘Reeko’ Moosa Manik said ruling Maldivian Democratic Party (MDP) “will be unstoppable” in its protest against claims that it is irreligious.

Some members observed that a dual protest would disrupt the public order, and asked both sides to cancel their demonstrations.

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J Hotels and Resorts to sue government

J Hotels and Resorts intends to sue the government “at length” over the Cabinet’s decision to terminate the contract for Laamu Gan Asseyri Project, which was awarded in October.

Company chairman and former ruling party MP Abdulla Jabir said no explanation for the termination was given, and claimed it was not the first time that the Cabinet had retracted a decision.  He said he had “strong suspicions” of corrupt dealings.

“There are ruling party members who decided that they want the project, so they forced the President to terminate my contract through the Cabinet. The Cabinet is unfit to operate, it is just playing games on its high chair in the Maldives,” Jabir said.

The project was won via bidding and awarded on October 12 of this year. It includes a 50-year lease of 25 hectares for the development of hotels and 79 guest houses containing a total of 1,500 beds. Restaurants, spas and sports facilities were also included in the project plan.

Originally, a joint venture company was to be created with the government, which would earn a five percent share, and J Hotels and Resorts. State Minister for Tourism Thoyyib Mohamed was previously reported saying the government preferred a private party to develop and manage the whole project, but the ministry had a ‘Plan B’ to lease out separate components of the project to different parties.

According to the government gazette the Cabinet decided to terminate the contract on November 29, and has lately decided to re-open the bidding process.

Minister of Tourism Mariyam Zulfa was unavailable for comment, however Permanent Secretary Ahmed Solih said the ministry had sent its reply to J Hotels and emphasised that the issue now lies between the Ministry and the company.

Jabir warned that the Cabinet’s decision was one of several factors that was causing a dip in investor confidence.

“These are expensive games, for the investors and for the Maldivian people,” he said. “The government is losing credibility doing this. I am disappointed that the Maldivian government is dishonoring its agreement.”

According to Jabir, the contract between J Hotels and the Ministry of Tourism was valid under Maldivian contract law.

“We have incurred losses of income and opportunity, and our lawyer is assessing those losses now,” Jabir said, reiterating that the company plans to sue the government.

He further claims that a contract cannot be terminated unilaterally, as the Cabinet has done, and that the government cannot accept bids for a project which is the active subject of a lawsuit.

Jabir was unable to provide further details regarding losses incurred.

Last week, the Cabinet instructed the Attorney General’s Office to monitor allegations of corruption made against the government, and file defamation lawsuits where such allegations were proven unfounded.

The Cabinet’s request follows growing concern that some such allegations are being made for political purposes. Meanwhile, the acrobatics of local politics could have a detrimental effect on foreign investment.

At the same time, the government has been tasked with improving its latest ratings in Transparency International’s 2011 Corruption Perception Index (CPI), which were less than favorable.

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President defends traditional Maldivian Islam as parliament endorses Bari as Islamic Minister

The parliament has approved the reappointment of Dr Abdul Majeed Abdul Bari as Minister for Islamic Affairs, in a narrow vote 38 in favour 35 against.

Dr Bari was first appointed to the position under a coalition agreement made between the government and the religious Adhaalath Party, resigned on the party’s request after it made the decision to break the agreement t over the government’s religious policy.

Opposition parties have earlier said their MPs in the parliament would  not vote in favor of Dr Bari and that he would be dismissed. A parliament committee that looked into the issue has meanwhile dismissed his reappointment and will submit a report on the matter.

Adhaalath made a further move today to sever its connection with the government, dismissing its former President and current State Islamic Minister Sheikh Hussein Rasheed. Sheikh Hussein had been also asked to resign by the party following its split with the MDP, but had elected to remain in the government.

Speaking to Minivan News, Sheikh Hussein said that he had received a letter from the Adhaalath Party yesterday informing him that he had been dismissed from the party for acting against the party’s ideas.

”The people will know the work I have done for Adhaalath Party,” he said. “When the party was first established there was no one that had the courage to take the lead so I did. No one had the courage to go and take the party registration form but I went and took it,” Sheikh Rasheed explained. ”That was the time when the former President and scholars were under great influence and threat of being imprisoned.”

Now, he said, the party was under the influence of former President Maumoon Abdul Gayoom.

Sheikh Hussein said the VTV television station, owned by opposition-aligned MP and tourism tycoon Gasim Ibrahim, had reported his dismissal from the Adhaalath Party before the decision had even been taken by the disciplinary committee.

He said that when the party asked him to resign from his position, he only told the party his view on the matter.

“Dr Bari and I are working independently in the Ministry, free from influence,” he said. ”If I If I have violated any regulations there will be actions taken, but the party’s Disciplinary Committee needs to be investigated first.”

”We created the party with a very good intention. It was to go forward with the country and citizens and to serve the religion. But that is not the direction in which that party is moving now,” he said.

Sheikh Hussein said he had not yet decided to join another party, and was currently awaiting word from the Elections Commission on the matter.

Dr Bari and President of Adhaalath Party President Sheikh Imran Abdulla did not respond to Minivan News at time of press.

Government stands up

President Mohamed Nasheed has meanwhile defended Islam and Maldivian culture and traditions, ahead of an opposition-backed religious protest on December 23. The website promoting the protest briefly called for the “slaughter” of “anyone against Islam”, slogans which were subsequently removed and blamed on a “technical mistake”, “hackers” and later, “intelligence officials”.

Nasheed has claimed that religious protesters are trying to implement Islamic Sharia penalties such as stoning, amputation and execution – penalties which have traditionally been pardoned by the Maldivian judicial system.

Speaking at a rally held on Saturday evening, Nasheed defended traditional cultural practices such as playing and listening to music and the role of women in society, noting that “women have been in the Maldivian workforce as long as men.”

He  called on political parties to publicly state which form of Islam they supported: “the Islam we have been practicing in this country for several hundred years, or a new faction of Islam.”

Protest organisers President of the Adhaalath Party Sheikh Imran Abdullah, and Abdullah Mohamed, head of a coalition of religious NGOs organising the protest, were questioned by police on December 13.
Press Secretary of the President’s Office, Mohamed Zuhair, today claimed that “former President Gayoom, the Adhaalath Party and religious extremists are whipping up hatred, intolerance and xenophobia for political purposes. They hope to topple the government from the streets because they can’t defeat it through the ballot box.”
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Dhiraagu launches BlackBerry

Dhiraagu has officially launched BlackBerry services, and now offers customers three BlackBerry Smartphone plans, which can be added to postpaid plans.

At  a press  conference  held  at  Dhiraagu  today Director of Marketing Ahmed  Maumoon said,  “After  a  very  successful  soft‐launch  period  for  thorough  testing  of  the  BES
solution  with  different  customer  groups  we  are  delighted  to  unveil  Dhiraagu  BlackBerry Smartphone Plans with the largest network in the Maldives.”

Maumoon commented that the preliminary soft launch period was proof Dhiraagu’s attention to customer needs and preferences.

In September of this  year, competitor Wataniya launched BlackBerry service in the Maldives. Officials at the time considered it an important step for business in the country, given the service’s reputation for strong security.

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Naifaru Court orders BML to issue dollars to Naifaru NGO

Naifaru Court has ordered the Bank of Maldives (BML)’s Naifaru Branch to issue an amount of dollars requested by the ‘Naifaru Juvenile’ NGO, after it sued the bank for declining to issue dollars because the NGO had deposited dollar cheques rather than physical cash.

Naifaru Court Judge Abdul Muhusin delivered the verdict yesterday and said that there was no legal grounds for the Bank of Maldives to withhold the money, and that all the dollars saved in the bank under Naifaru Juvenile’s name belonged to the NGO.

The judge also ruled that the bank had no authority to change the money into another currency when the owner requested it to be kept in the specific currency that the owner had deposited.

The money saved in Naifaru Juvenile’s account was money aid money from foreign parties to conduct different activities under agreements it had made, and if the money was not released, the foreign parties aiding the NGO might lose confidence in it, the judge said.

The judge also noted that its inability to draw on its funds could potentially lead to the NGO losing future agreements and aid from foreign parties.

BML and other banks in the Maldives are currently facing an ongoing major dollar shortage and have limited the amount of dollars they issue each day.

While the official exchange rate has been floated within 20 percent of the pegged rate of Rf12.85, it has sat for much of the year at the upper bracket of Rf15.42. The exchange rate on the black market is up to Rf20.

While dollars pour into the Maldives’ profitable tourism sector, much of this is swiftly banked overseas and little enters the local economy. The Maldives Monetary Authority (MMA) has never enforced regulations requiring use of the local currency and most tourism businesses continue to charge tourists in US dollars, greatly limiting demand for rufiya.

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GMR could colonise economy: DQP

A 24-page book released by Dhivehi Quamee Party (DQP) presents the government’s lease of Ibrahim Nasir International Airport (INIA) to developer GMR as a threat to local industry that will “enslave the nation and its economy”.

In the book, titled “Handing the airport to GMR: The beginning of slavery”, the DQP claim that the government has not only leased INIA operations to GMR, but  has allowed the company to open other businesses in the Maldives.

GMR Male’ Retail was recently registered at the Economic Ministry. It is the second GMR business registered in the Maldives.

Citing information available in the public domain, DQP alleges that all Hulhule island lagoon resources will become the property of GMR, including the Hulhule Island Hotel (HIH), in-flight catering services and the Maldivian Air Taxi service.

Because salaries paid to Maldivian employees are a burden, the book claims, GMR will bring in Indian employees and house them in Hulhumale, “creating a visa-free zone for Indians to come and go”, reads Haveeru’s translation.

DQP further alleges that the airport development budget covers the expense of building hotels, offices and apartments on Hulhule but claims that there is no official requirement for GMR to develop a runway – apparently a key benchmark of local benefits.

Meanwhile, GMR today held a ground-breaking ceremony at INIA today to celebrate the start of work on a new terminal.

When asked about the groundbreaking, DQP member Dr Mohamed Jameel commented that “any development is good as long as it benefits the people of the Maldives. But the main benefit would be a new runway, and we don’t see that GMR is contractually obligated to construct one. Our question is, who will do the runway?”

London Heathrow has two runways, and is the busiest airport in the world with over 65 million passengers annually. The new terminal in the Maldives will take the airport up to a capacity of five million.

Jameel said completed development projects are not contributing to national development.

Other claims in the book include that all foreign currency earned at the airport is being deposited abroad by GMR, leading to the current dollar shortage.

Jameel called the book “a responsible work in the sense that it highlights issues relating to overall economy. This issue is very close to the hearts of the Maldivian people since the work at the airport was originally done by the Maldivian people. And we don’t agree that the people have the best deal.”

Minivan News asked whether use of the word ‘slavery’ in the book’s title had a purpose.

“In modern times people don’t colonise by taking over other countries, they colonise through economic and business ventures. A small country like the Maldives is very vulnerable to its economic needs. We have a history of neighboring countries manipulating the Maldives through economy, and it has been difficult to break those ties,” said Jameel.

President’s Office Press Secretary Mohamed Zuhair said he felt the title’s wording was “very strong”, and drew a faulty comparison between international cooperation for mutual benefit and foreign occupation of a people and market for selfish purposes.

“The purpose of all this is to make Maldivians mistakenly feel like they are under occupation and the country is being sold out,” said Zuhair, who pointed out that the government “wouldn’t have gone out for an international bid [on the airport project] if there was a way to borrow money and do it internally.”

He explained that the airport now yields “a bulk” of the national revenue, in dollars: “If foreign visitors increase, income increases. It’s simple math.”

He added that the negative publicity could have a negative impact on relations with “a very friendly neighbor, India.”

Ultimately, Zuhair doubted that DQP’s book would deliver the desired outcome.

“Attempts to ferment nationalist sentiment against a profitable corporation are bound to fail because people are more aware of the issues. The income the government makes from the airport is already double what the previous government made.”

An informed source close to the former regime told Minivan News that the former government’s plans for airport development were not Male’ based, but instead re-routed growth and profits to Maamigili. The source suggested that individuals close to former president Maumoon Abdul Gayoom were then in a position to “benefit significantly” from the plan.

“The opposition does not like that the current government is keeping the business in Male’,” said the source.

DQP plans to distribute 20,000 copies of the book.

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