Category: News in Brief

Construction of tertiary hospital in Hulhumalé to begin in May

Construction work on the private Tree Top Hospital in Hulhumalé is expected to begin next month.

The ministry of health awarded a project to build a multi-specialty tertiary hospital to Tree Top Investments in September last year.

Tree Top Investments was formed in 2013 by four prominent local tourism companies – Champa Brothers, Kasa Holdings, Crown Company, and Kuredu Holdings.

The government-owned Indira Gandhi Memorial Hospital (IGMH) in the capital is at present the only tertiary hospital in the country. Establishing tertiary hospitals in the north and south to ease the burden on IGMH, which caters to patients travelling from across the country, is a campaign pledge of President Abdulla Yameen.

At an inauguration ceremony held at the Jen Hotel in Malé yesterday, Tree Top signed a contract with Turkish company Turmaks Alke for the construction of the 159-bed, six-storey hospital.

The expected date for completion is November 11, 2016, with the official opening scheduled for March 1, 2017.

An agreement was also signed with Malaysian company Ramsay Sime Darby for management of the hospital.

Speaking at the ceremony, tourism magnate ‘Champa’ Hussain Afeef said the estimated cost of the project is US$60 million.

Afeef said the resort companies are taking a risk by investing in a tertiary hospital and could face losses for ten years.

“But we are taking that risk because it is very much needed for the Maldives and because we are able to do it,” he was quoted as saying by newspaper Haveeru.

The goal is providing services that are currently unavailable in the Maldives, he added.

Tree Top Director Ahmed Saleem said Ramsay Sime Darby was chosen based on the company’s experience and expertise.

The partnership offers advantages such as exchanging specialists from Malaysian hospitals, he said.

The Malaysian company’s official partner is Ramsay, which is Australia’s largest hospital management company, Saleem noted.

The hospital project was awarded to Treetop last year after initial expressions of interest (EOIs) submitted by 10 companies were cancelled.

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New penal code delayed by three months

Parliament’s national security committee plans to defer by three months the enforcement of the new penal code, which will bring widespread changes to the Maldivian legal system, reports Haveeru.

The penal code is due to come into force on Monday, April 13 but ruling Progressive Party of Maldives MP Jameel Usman told the local daily that he believed more time was needed to raise awareness among the public.

The current penal code was passed in 1966.

Maldivian Democratic Party MP Mariya Ahmed Didi accused the government of delaying implementation of the new code in order to prosecute opposition supporters and mete out harsh punishments under existing laws.

At today’s meeting of the oversight committee, which is dominated by pro-government lawmakers, Usman proposed adding a clause to the penal code to postpone its enforcement.

The oversight committee was reviewing a government-backed bill submitted to bring minor changes to the new penal code ahead of its enforcement. Usman’s clause has been added to the amendment bill after a majority of the committee’s MPs voted in favour.

A sitting of parliament is meanwhile expected to take place on Sunday for voting on the bill. If the legislation is passed, President Abdulla Yameen will have to ratify it on the same day to postpone the implementation.

The revised penal code was passed on April 1, 2014 with a one-year period to prepare institutions for the seminal changes to the criminal justice system.

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Power bill deadline extended amid protests

Fenaka Corporation, the main electricity provider in the atolls, has extended the deadline for businesses to pay their March electricity bills after widespread protests over a subsidy cut.

Businesses and shops in several islands shut down in protest this week after electricity bills for March doubled and in some cases tripled following the removal of government subsidies.

Some have said they will not pay their bills until a new agreement is reached with the state-owned utility company.

Fenaka said in an announcement today that the new deadline is April 30, and businesses who pay by then will not face fines for late payment or disconnection.

However, the announcement warned that businesses will face fines or disconnection of services after May 1.

Businesses in Haa Dhaal Kulhdhuffushi, Gaafu Dhaal Thinadhoo, and Addu City have set up committees to negotiate with the government.

Businesses in Fuvahmulah and Vaikaradhoo are planning to submit a petition to the president demanding a fair price for electricity.

Gahdhoo in Gaaf Dhaal and Thulhaadhoo in Baa atoll meanwhile asked state electricity company Fenaka to pay the island councils for plots of land rented to the company.

Electricity prices are up to 72 percent higher in northern Haa Alif , Haa Dhaal, and Shaviyani Atolls and up to 37 percent higher in Addu City and Fuvahmulah than in Malé City, according to figures from Fenaka.

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Opposition to field single candidate for vacant Majlis seat

The opposition coalition is holding talks to field a single candidate for a vacant parliament seat after the incumbent MP was sentenced to life in jail on corruption charges.

The Elections Commission has scheduled the by-election for the Dhiggaru constituency for June 13. The call for applications will be open from April 15 – 25.

Though the “Maldivians Against Brutality” coalition is made up of parties with vastly different ideologies, they are confident of fielding a single candidate against the ruling Progressive Party of the Maldives (PPM).

Former PPM partners, the Adhaalath Party and the Jumhooree Party, allied with the main opposition Maldivian Democratic Party following what they called a government crackdown on opposition politicians including former President Mohamed Nasheed and former defence minister Mohamed Nazim.

The two were sentenced last month to 13 years and 11 years in jail for terrorism and weapons smuggling, respectively.

Meanwhile, JP leader Gasim Ibrahim is facing a US$100million fine that may bankrupt his Villa Group.

Adhaalath spokesperson Ali Zahir and a PPM councilor for of Meemu atoll council Moosa Naseer have expressed interest in standing for the vacant seat.

The former Dhiggaru MP Ahmed Nazim lost his seat on Monday after the Supreme Court convicted him of defrauding the former atolls ministry.

Ex-MP Nazim, a former deputy speaker of the Peoples Majlis was convicted of defrauding the state of MVR 1.4 million (US $91,400) by submitting bids on behalf of non-existent companies to supply 15,000 national flags to the now-defunct atolls ministry.

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Tax authority collects MVR1.2bn in March

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The country’s tax authority collected MVR1.27 billion (US$82 million) in March, up 29 percent from the same period last year.

The Maldives Inland Revenue Authority noted that revenue was 18.8 percent above forecasts thanks to higher tourism goods and services tax (T-GST) receipts following a hike from eight to 12 percent in November.

Revenue also rose from tourist lease rent and the general GST.

A portion of GST payments from February was also collected in March as February 28 fell on a weekend and the deadline was moved to March 1.

Fines collected last month were also nine times higher than March 2014, while payments for resort lease period extension fees also contributed to the revenue growth.

The extension fees were not collected in the corresponding period last year.

GST payments accounted for 58 percent of total revenue collected in March 2015, followed by tourism land rent (22.3 percent), airport service charge (4.2 percent), business profit tax (3.9 percent), and lease period extension fees (3.6 percent).

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India steeply increases aid to Maldives

India has increased its aid budget for the Maldives more than sixfold this year.

According to the budget of India’s Ministry of External Affairs for 2015-16, the country allocated INR 250m (US $4m, MVR 61.6m)  for Maldives last year, but this year the figure will shoot up to INR 1.83bn (US $30m, MVR 450m).

Objectives for the Maldives include setting up a police academy and the construction of a composite training centre in Male’, the budget says.

“A large proportion of the budget of the ministry is allocated towards technical assistance programmes in neighbouring countries and other developing countries,” said the budget.

Countries receiving Indian aid and loans include Nepal, Bhutan, Bangladesh, Myanmar, Sri Lanka, Mongolia, African countries, Latin American countries and Eurasian countries.

India will be giving INR 6.76bn (US $110m, MVR 1.67bn) to Afghanistan this year, less than last year’s INR7.1bn, as New Delhi seeks to help the war-torn country rebuild.

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Home ministry to create replica of ancient island village

The home ministry is planning to create a replica of an ancient island village on the eastern side of Malé to mark the upcoming golden jubilee of independence from the British.

Various cultural activities as well as arts and handicraft will be presented to the public during a three-day event. The home ministry has not announced a date for the exhibition.

Deputy home minister Abdulla Mohamed told the press today that small thatch houses, swings, and huts made of coconut palm trunks, will be built in the area stretching from Usfasgandu to the carnival area.

Small boats will be docked at the artificial beach while 20 halls will be set up for the 20 atolls of the Maldives to showcase the country’s history and culture.

The Maldives gained independence from the British on July 26, 1965.

The ‘Minivan 50’ office (Independence 50) set up to plan and oversee celebratory activities also plans to hold cultural events across the country.

A team of judges from the ministry will select the best presentation, after which it will be featured at the event in the capital.

Other activities to mark the golden jubilee include a skydiving event and a sea sports festival.

 

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Government promises jobs to Maldivians in new Thilafushi port

The government has assured jobs to Maldivians in a new commercial port to be built by a Emirati company on Thilafushi island.

MP of the ruling Progressive Party of the Maldives, Ahmed Nihan, said the chairman of Dubai Ports (DP) World has said Maldivians would be involved in the management of the port.

The Dubai-based marine terminal operator signed a Memorandum of Understanding with the Maldivian government last month to develop a port at Thilafushi as a free trade zone.

“He said Maldivians would also be sent to countries like Dubai, Hong Kong, and Korea for training. This would be a great encouragement for Maldivians to develop our human resources,” the majority leader of parliament was quoted as saying.

The relocation and development of the central port would not harm the domestic economy, he added.

DP World Chairman Sultan Ahmed Bin Sulayem met MPs of the Progressive Party of Maldives yesterday during an unofficial visit to the Maldives.

Tourism Minister Ahmed Adeeb and Economic Development Minister Mohamed Saeed also participated in the meeting. The former is the chairman of the government’s Special Economic Zones’ investment board.

According to the local daily, Sulayem also expressed interest in investing in other ‘mega projects’ announced by the government such as the ‘I-Havan’ transhipment port in the northernmost atoll.

“The Maldives has been growing rapidly, driven largely by its tourism development. We are working with them to help diversify the economy through building infrastructure, logistics and transport links needed to make this happen,” Sulayem said in a press statement last month.

“The UAE has much experience and expertise in this area thanks to the vision of our leaders to explore new growth strategies. We are proud to share our expertise with the Maldives as they develop their capabilities in the global supply chain industry.”

Adeeb told local media last month that DP World has agreed to complete the project within two years of signing a joint venture agreement with the Maldives Ports Limited.

A timeline for the project has been agreed upon and the MoU was signed with a view to signing the joint venture agreement in a month, he said.

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Maldives ‘open for Japanese investment’

Foreign minister Dunya Maumoon said today that the Maldives is open for Japanese investments, as the east Asian country donated MVR 64 million (US $4m) of “disaster reduction equipment”.

“The Maldives is open for Japanese investment. Be it airport development, or tourist resort development, or transportation sector development, the Japanese investors will have the full guarantee that their investment will be fully protected,” Dunya said.

She was speaking at a ceremony at the Ministry of Foreign Affairs today for the signing of the Japanese aid deal.

The foreign ministry had not specified what the equipment consisted of at the time of going to press.

The government said in June last year it was in talks with the Japan Bank to secure a loan of US $200m to help redevelop the country’s main international airport, but this month it said it was looking to the Saudis for the cash.

In her remarks, Dunya expressed appreciation from the Maldives to Japan for nearly four decades of support, which have included providing the sea wall around Malé and constructing primary schools.

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