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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Herathera Resort to be sold to a Singaporean company for USD 33.3 million

Maldives Tourism Development Corporation Public Limited Company (MTDC) has announced that it will be selling the company’s first resort Herathera Island Resort to a Singaporean company for USD 33.3 million.

MTDC Executive Director Ahmed Niyaz stated that four companies had shown interest by the time the announcement of sale of the resort had expired on December 31, local media reported.

Niyaz stated the contract had been awarded to the highest bidder Singaporean developer Canaries Pvt Ltd.

“We decided to sell the island to whoever offered the highest price. Thus, as Canaries submitted the highest price, we are now in the process of handing over the award letter to them. We will do so within the next two days,” he said.

He further revealed that the second highest price had also been submitted by a Singaporean company, whle the third highest price was offered by Maldivian businessman ‘Champa’ Hussain Afeef’s Treetop Maldives company.

The fourth party to have expressed interest was a Malaysian company which, according to Niyaz, had been disqualified for not fulfilling the requirement of submitting a bank guarantee of USD 1 million.

Niyaz stated that Canaries Pvt Ltd must submit the full payment for the island within thirty days of the award letter being issued. If it fails to do so, the company’s bank guarantee will be claimed by the Maldivian government and the island will be sold to the next highest bidder.

The previous board of directors of MTDC had decided to sell the four star resort to Champa Hussain Afeef for USD 30 million. However, the decision had been revoked after the board was recompiled.

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Addu airport stake sold to Champa Afeef’s Kasa Holdings

An agreement was signed last night to sell 30 percent of the Addu International Airport Company Pvt Ltd (AIA) to tourism pioneer ‘Champa’ Hussain Afeef’s Kasa Holdings to raise finances to develop the Gan airport in Addu City.

AIA is a joint venture formed by the Gan Airport Company Ltd (GACL), Maldives Airports Company Ltd (MACL) and the State Trading Organisation (STO).

The airport infrastructure and facilities in the uninhabited Gan island of the southernmost Seenu atoll was leased to the government-controlled consortium for 50 years with a mandate to develop and operate the asset as an international airport.

The agreement to sell a 30 percent stake in AIA for MVR 60 million (US$3.9 million) was meanwhile signed on behalf of the company by Managing Director Shahid Ali – also Managing Director of STO – and ‘Champa’ Mohamed Moosa on behalf of Kasa Holding.

The agreement was signed in spite of a public threat by Jumhoree Party (JP) Leader and MP for Alif Dhaal Maamigili, Gasim Ibrahim, that Shahid Ali would be sacked from his post if the sale went through.

Gasim, who had previously alleged corruption in the deal, told reporters on Sunday night that Shahid could not “stay in his post if he signs it,” according to newspaper Haveeru.

He also warned that the STO MD could “not live on this island” if the sale was finalised.

Shahid meanwhile reportedly said after the signing ceremony last night that the agreement was signed after the Finance Ministry and Public Enterprises  Monitoring and Evaluation Board (PEMEB) gave clearance for the sale.

Shahid noted that Afeef’s stake in the seaplane operator Trans-Maldivian Airways (TMA) would be an advantage in the development of the Gan airport.

Following the signing ceremony, Shahid told private broadcaster Raajje TV that the sale was made after a decision by the AIA board of directors, a public tender, evaluation of shortlisted candidates and “authorisation from the Finance Ministry”.

Proceeds from the sale would finance “a major project to develop Gan airport,” he said, including expanding the runway and repairing damages in the airport as well as establishing a new drainage system and a seaplane base.

“The estimate of the consultants for all this is US$40 million. So even if we obtain loan finance or contractor finance for this US$40 million project, we would need an equity injection,” he explained. “Therefore, we need an investment to get this equity injection – a party that would give this money to the company as an equity injection.”

The AIA board in consultation with the government decided to invite proposals from Maldivian companies, Shahid said, adding that Kasa Holdings was the only local company to submit a bid.

Shahid stressed that Kasa Holdings was sold a stake in the management company AIA and not the Gan airport.

On the allegations of corruption by the government-aligned JP, Shahid insisted that the sale was made “through an open and transparent bidding process,” adding that AIA would “welcome” an investigation.

The Anti-Corruption Commission (ACC) revealed to local media today that it commenced an investigation into the sale of the AIA stake last month based on assertions in the press.

ACC Deputy Chair Muaviz Rasheed told newspaper Haveeru that the investigation would be completed this week.

Letter to the President

Speaking in parliament yesterday, JP MP Alhan Fahmy claimed that the “self-interest” of Dhivehi Qaumee Party (DQP) was behind the sale of the AIA stake, alleging that DQP senior officials Imad Solih and the party’s leader and Special Advisor to the President Dr Hassan Saeed were complicit in corrupt dealing.

“The government should not sign this agreement. This case should be investigated at a national level,” he said, claiming that the 30 percent stake “could be sold tomorrow to an Israeli party.”

“Addu Atoll Gan is a military strategic location the whole world is watching,” he claimed, calling on the government to reconsider the decision.

Alhan told Raajje TV last night that JP would submit the case to the ACC and parliamentary committees, repeating the corruption allegations and questioning the valuation of the 30 percent stake.

Alhan claimed that Dr Saeed had asked JP Leader Gasim not to oppose the deal at a meeting at the President’s Office yesterday.

In a letter to President Dr Mohamed Waheed Hassan Manik last week, Gasim contended that MVR60 million for 30 percent of AIA’s share was “a very small amount” as the value of the airport would exceed MVR 3 billion (US$200 million).

Moreover, while US$44 million had been estimated as the cost of developing the airport, the JP MP claimed that the project could be completed with US$24 million.

An “open tender just in China alone” for the project would suffice to prove his assertion, Gasim wrote in his letter to Dr Waheed.

Gasim warned that Kasa Holdings would be positioned to acquire 70 percent of AIA by moving to sell 40 percent to a buyer of its choice.

“If a member representing the government does not attend a board meeting held to sell this 40 percent, Kasa Holdings will have the power to sell 40 percent of shares to whoever it pleases at whatever price it wants,” Gasim wrote. “In light of my experience on how these [deals] are completed, I have to say that the ultimate result would be the remaining unsold 40 percent being sold to a buyer of Kasa’s choice and the opening up of the opportunity for Kasa Holdings to control 70 percent, and within this opportunity, for [Kasa] to sell 51 or more percent of AIA to another foreign party.”

Gasim further contended that the move would pose a risk to national security, as the government would have no legal powers over the company.

Cancelling the agreement would mean paying the foreign party a “huge amount in compensation,” he claimed.

Gasim insisted that the Gan aiport should be developed by MACL and offered in his letter to reclaim land for the project free of charge “using my own dredger, employees and machinery with the government only providing oil.”

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JP Leader Gasim threatens STO MD with dismissal if Addu airport stake is sold

Jumhoree Party (JP) Leader and MP for Alif Dhaal Maamigili MP, Gasim Ibrahim, has warned the Managing Director of the State Trading Organisation (STO) Shahid Ali that he would be sacked from his post if an agreement is signed to sell a 30 percent stake in the Addu International Airport Company Ltd (AIACL) to Kasa Holdings.

Responding to a question from a reporter at a function at the JP office last night, Gasim reportedly said Shahid could not “stay in his post if he signs it,” according to newspaper Haveeru.

He also warned that the STO MD could “not live on this island” if the sale was finalised.

The remarks from the JP presidential candidate comes after the Finance Ministry yesterday asked AIACL to halt the sale of a 30 percent stake in the consortium to Kasa Holdings, which was intended to raise finances for development of the Gan airport in Addu City.

‘Champa’ Hussain Afeef, tourism pioneer and business mogul, owns Kasa Holdings. A consortium formed by the Maldives Airports Company Ltd (MACL), STO and the Gan Airport Company meanwhile owns AIACL.

AIACL Managing Director Shahid Ali – also managing director of STO – told Sun Online on Sunday that the Finance Ministry asked to halt the sale of shares until the Public Enterprises Monitoring and Evaluation Board (PEMEB) gives clearance for the sale.

Shahid meanwhile told newspaper Haveeru that the agreement for the sale of shares was to be signed yesterday and that all arrangements had been made to complete the sale when the Finance Ministry’s instructions came through.

Shahid however claimed that it was “not the government’s policy” to stop the sale, adding that he expected the agreement to be signed next week with PEMEB’s clearance.

Meanwhile, Gasim sent a letter to President Dr Mohamed Waheed last week alleging corruption in the proposed sale of 30 percent of AIACL’s stake.

If the sale goes through, Gasim warned that Kasa Holdings would be positioned to acquire 70 percent of AIACL by moving to sell 40 percent to a buyer of its choice.

“If a member representing the government does not attend a board meeting held to sell this 40 percent, Kasa Holdings will have the power to sell 40 percent of shares to whoever it pleases at whatever price it wants,” Gasim wrote.

“In light of my experience on how these [deals] are completed, I have to say that the ultimate result would be the remaining unsold 40 percent being sold to a buyer of Kasa’s choice and the opening up of the opportunity for Kasa Holdings to control 70 percent, and within this opportunity, for [Kasa] to sell 51 or more percent of AIA to another foreign party.”

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Gasim alleges corruption in Gan airport development deal

Jumhoree Party (JP) Leader and MP for Alif Dhaal Maamigili, Gasim Ibrahim, has alleged corruption in the proposed sale of a stake in the Addu International Airport Company Ltd (AIA) to finance development of the Gan airport in Addu City.

The allegations were made in a six-page letter from the business magnate MP sent on Tuesday to President Dr Mohamed Waheed, which was leaked to local media last week.

The JP presidential candidate reportedly contended that the government had decided to sell a 30 percent stake in AIA to a local company named Kasa Holdings “without due consideration.”

‘Champa’ Hussain Afeef, tourism pioneer and business mogul, owns Kasa Holdings.

A consortium formed by the Maldives Airports Company Ltd (MACL), the State Trading Organisation (STO) and the Gan Airport Company meanwhile owns AIA.

AIA Managing Director Shahid Ali – also managing director of STO – confirmed to newspaper Haveeru in September that the AIA board of directors had decided to sell a 30 percent stake in AIA to Kasa Holdings for MVR60 million (US$3.9 million).

Shahid explained that Kasa Holdings and a Malaysian company had bid for the project following a public tender or announcement. He added that the Finance Ministry was consulted prior to the decision to sell the 30 percent stake.

Moreover, the bid announcement was made after the President’s Office approved the process, he said. However, the sale has been held up after the Transport Ministry asked the consortium to review the process and determine if the valuation was in line with the Public Finance Act.

Shahid said in September that AIA had requested legal advise from the Attorney General and that the government had not instructed the company on how to proceed.

Gasim meanwhile said in his letter that MVR60 million for 30 percent of AIA’s share was “a very small amount” as the value of the airport would be higher than MVR 3 billion (US$200 million).

Moreover, while US$44 million had been estimated as the cost of developing the airport, the JP MP claimed that the project could be completed with US$24 million.

An “open tender just in China alone” for the project would suffice to prove his assertion, Gasim wrote in his letter to Dr Waheed.

If the sale goes through, Gasim warned that Kasa Holdings would be positioned to acquire 70 percent of AIA by moving to sell 40 percent to a buyer of its choice.

“If a member representing the government does not attend a board meeting held to sell this 40 percent, Kasa Holdings will have the power to sell 40 percent of shares to whoever it pleases at whatever price it wants,” Gasim wrote. “In light of my experience on how these [deals] are completed, I have to say that the ultimate result would be the remaining unsold 40 percent being sold to a buyer of Kasa’s choice and the opening up of the opportunity for Kasa Holdings to control 70 percent, and within this opportunity, for [Kasa] to sell 51 or more percent of AIA to another foreign party.”

Gasim further contended that the move would pose a risk to national security, as the government would have no legal powers over the company.

Cancelling the agreement would mean paying the foreign party a “huge amount in compensation,” he claimed.

Gasim insisted that the Gan aiport should be developed by MACL and offered in his letter to reclaim land for the project free of charge “using my own dredger, employees and machinery with the government only providing oil.”

In October 2011, Gasim opened the Maldives’ first private airport at his native Maamigili with his ‘Flyme’ Villa airline landing the first flight in the new airport in Alif Dhaal atoll.

Gasim’s Jumhooree Party, part of the ruling coalition, is among parties calling for the nationalisation of the Ibrahim Nasir International Airport and cancellation of the previous administration’s concession agreement with Indian infrastructure giant GMR to develop and manage the Hulhule airport.

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