Tag: china

Maldives airport operator praises “smooth” handover as government remains undecided on INIA future

The Maldives Airports Company Limited (MACL) has said there has been no disruption to services at Ibrahim Nasir International Airport (INIA) after it resumed management of the site from infrastructure group GMR on Saturday (December 8 )  – a claim backed by several resort operators and airlines.

Indian-based GMR yesterday handed INIA over to the state-owned Maldives Airports Company Limited (MACL) after the Maldivian government had voided its concession agreement, giving the company seven days to leave the country.

The sudden eviction of the developer – which won a 25 year concession under the former government to manage and upgrade the airport – scraps the project, which at US$511 million was the single largest foreign investment in the Maldives.

Upon reclaiming management of the airport yesterday, MACL Managing Director Mohamed Ibrahim told Minivan News that the handover had gone “smoothly”, with INIA continuing to operate over the last 24 hours as it had done under GMR.

“We have the same staff and equipment here as before [the handover]. Two years back we handed over the same equipment to GMR and there has been no discontinuation of service,” he said.

As part the GMR’s concession agreement, aside from developing an entirely new airport terminal building, the company had also undertaken work to renovate and update INIA’s existing terminal structures and operations – including retail and baggage handling facilities.

With MACL once again managing the site, a senior services manager for one of the largest airlines presently flying to the Maldives told Minivan News that it had experienced “no issues at all” in terms of operating in and out of the country since the handover.

Similarly, the general manager of a resort in Male Atoll also stressed that there had been no disruptions to service.

“Certainly so far there has been no impacts on our arrivals or departures, things seem to have gone smoothly,” the general manager said.

Future direction

When contacted about the future for the airport post-GMR, the President’s Office today told Minivan News that no decision had yet been taken on when – or if – the country would look to tender a new privatisation agreement for the site.

“Nothing of that kind has been decided,” said President’s Office Media Secretary Masood Imad.

Asked as to what action would be taken over the existing structures put in place by GMR before work on its proposed new terminal was halted over a permit dispute earlier this year, Masood questioned why the President’s Office had been contacted over the technical “nitty gritty” of the airport.

“We don’t micromanage all aspects of the airport, these are questions for the Transport Ministry,” he said.

Development conference calls

Meanwhile, the religious Adhaalath Party, which forms part of the government coalition of President Dr Mohamed Waheed Hassan, today called for a national level conference to be held on how INIA should be developed and operated in future.

Speaking at a press conference, party President Sheikh Imran Abdullah told local media that the airport development should not be delayed, calling for a conference to be held to air opinions on how best to proceed in future – not ruling out foreign expertise if needed.

“All people involved in this sector should come together soon for a national conference, the result of which should be a vision of how the airport should be operated in the future,” he was quoted by Sun Online.

Sheikh Imran was not responding to calls from Minivan News at time of press.

In recent months, the Adhaalath Party has been among several key government-aligned parties working to oppose the GMR agreement.

Sheikh Imran has previously predicted there would be “some unrest and damage” should the GMR deal be annulled, but nonetheless urged people to come out and support the calls for nationalisation.  The GMR deal was a 25 year concession agreement, with the airport still belonging to the government.

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Government takes over airport, evicts GMR

Indian infrastructure giant GMR has handed Ibrahim Nasir International Airport (INIA) over to the state-owned Maldives Airports Company Limited (MACL), after the Maldivian government voided the concession agreement and gave it seven days to leave the country.

The sudden eviction of the developer – which won a 25 year concession under the former government to manage and upgrade the airport – scraps the project, which at US$511 million was the single largest foreign investment in the Maldives.

GMR had clung to the terms of its concession agreement while the government fanned growing nationalistic and anti-India sentiment. On November 27, President Mohamed Waheed’s cabinet declared the agreement ‘void ab initio’ – invalid from the outset – and ordered the developer to leave.

With arbitration proceedings already underway in Singapore over the contested airport development charge (ADC), GMR received a stay order on its eviction and appeared confident of its legal position even as the government declared that it would disregard the ruling and proceed with the eviction as planned.

On December 6, a day prior to its eviction, the government successfully appealed the injunction in the Supreme Court of Singapore. Chief Justice Sundaresh Menon declared that “the Maldives government has the power to do what it wants, including expropriating the airport.”

That verdict, effectively legalising the sovereign eviction of foreign investors regardless of contractual termination clauses or pending arbitration proceedings, was “completely unexpected”, according to one GMR insider – “the lawyers are still in shock”.

A last ditch request for a review of the decision was rejected, as was a second attempt at an injunction filed by Axis Bank, GMR’s lender to the value of US$350 million.

Following a meeting with staff yesterday, GMR issued the following statement:

“In deference to the orders of the Court of Appeals, Singapore; GMR Male International Airport Ltd (GMIAL) will facilitate a smooth takeover of the Ibrahim Nasir International Airport (INIA) by the Maldives Airport Company Ltd (MACL), effective midnight tonight.

GMIAL has been assured that as a result of this takeover all its employees, suppliers and other interested parties will not be put to any inconvenience. GMIAL remains committed to finding a suitable solution to this situation. We are taking requisite steps to work out the compensation receivable from the Government of Maldives, keeping in mind the judgement of the aforementioned court and the concession agreement dated 28th June 2010.

All actions as above are without prejudice to our legal rights and statements made before various courts/tribunals where matters are currently being pursued or likely to be taken up.”

An invitation-only press conference to mark the handover was held by Defence and Acting Transport Minister Mohamed Nazim in the airport VIP lounge at midnight. Minivan News understands that GMR did not participate for legal reasons.

During the ceremony, Finance Minister Abdulla Jihad presented the official handover documents to MACL Managing Director Mohamed Ibrahim, and said that the Maldives would pay whatever compensation was required “however difficult”.

Economic Minister Ahmed Mohamed claimed the eviction would enhance investor confidence:

“Investor confidence will only increase when they know that Maldives will do everything in accordance with the law,” Haveeru reported the minister as saying.

Attorney General Azima Shukoor expressed hope that the compensation would be lower than anticipated.

Estimates as to the amount of compensation for which the government is liable have ranged from the US$220-240 million GMR estimated it has already invested, up to US$700 million – a sizeable chunk of the country’s GDP.

Apart from the size of the compensation is the Maldives’ ability to ultimately pay, given the crippled state of its domestic economy.

Finance Minister Jihad in late October warned that the Maldives would be unable to pay government salaries without a promised US$25 million loan from India.

A month later, amid rising anti-India sentiment over the GMR issue and a diplomatic incident triggered by the government’s spokesperson, Jihad described India’s calling in of US$100 million in existing loans as “not a major concern”. The debts, he said, would be paid from the state’s reserves, which local media at the time reported could fall to as low as US$140 million (MVR2.2 billion) once the payments to India were settled.

An International Monetary Fund (IMF) delegation in November warned that the Maldives’ financial reserves “have been declining slowly, [and] now account for just one and a half months of imports, and could be more substantially pressured if major borrowings maturing in the next few months are not rolled over.”

Further pressure on reserves came from a ballooning public debt ratio, “which now stands at over 80 percent of GDP, and has helped to boost national imports, thus worsening dollar shortages in the economy and putting pressure on reserves,” the IMF warned.

Presenting the 2013 budget to parliament in late November, Jihad warned of “bitter consequences” should the spending trend continue.

His target budget deficit of 6.1 percent in 2013 takes into account a raft proposed revenue raising and cost cutting measures which would impact the tourism industry – such a proposed tourism GST increase to 15 percent – and require parliamentary approval.

Further modernisation of the airport – or even completion of the existing upgrade – is likely to require extensive outside assistance or further loans. The rusting foundations of GMR’s new terminal sits on 60 hectares of newly reclaimed land on the airport island, after the government ordered a halt to the development in August. Large sections of the old terminal remain boarded up for construction work, which the government’s ability to proceed with is in doubt.

Further modernisation of the airport is likely to depend on outside assistance. President’s Office Spokesperson Masood Imad told Indian newspaper The Hindu yesterday that after reclaiming the airport, the government would again float a tender for its modernisation “and get more parties in to take the work forward.”

“The tender will be floated by the Maldives government in a transparent manner and after consulting investors. The mistakes made during the float of the tender which has been cancelled will not be repeated,” Imad told the paper.

Environment Minister Dr Mariyam Shakeela has meanwhile separately appealed to China for financial and technical support, telling journalists from the Chinese government’s authorised web portal China.org.cn that the Maldives “needs funds for infrastructure building.”

“We are obviously in need of funds and technical assistance as we do not have the financial means, the technical know-how or the capacity to address these huge climate change issues,” said Mariyam, in an appeal for assistance with climate adaptation.

The government has dismissed speculation Chinese involvement in the development, however Minivan News has learned that senior Chinese military officials landed at the airport in the tense week leading up to the handover, even as India warned of “adverse consequences” should the government proceed with forceful eviction.

India’s reaction after the Singapore Supreme court ruling was muted. Ministry of External Affairs Spokesperson Syed Akbaruddin said the ministry was “studying” the judgement and that their lawyers “need to understand it”.

“There are two issues in the case – one the sovereign right of a nation and other the legality of the agreement, which was linked to compensation to GMR and its associates in Malaysia, he said the latter part has not been “affected or responded” in today’s judgement.

“These issues are not affected with the judgement or not responded to. Fulfilment of all legal process and requirement is what we want to see in this case and we hope that all relevant contracts and agreements would be adhered to and all legal process are carried through,” he said.

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Maldives mulls tourism future as China reaches quarter of all arrivals

China has accounted for just under a quarter of all visitors coming to the Maldives for the first nine months of 2012, contributing substantially to a 3.4 percent increase in arrivals compared to last year despite declines in established European markets.

The Ministry of Tourism, Arts and Culture has said the figures indicated that the country remained on track to meet its aim of welcoming a million visitors in 2012.

Tourism authorities also said that despite the growing importance of China to visitor numbers, European markets remained the main overall contributor to the Maldives tourism sector.  As the country looks to commemorate 40 years since the introduction of the travel industry, officials have said that even declining custom from markets like the UK has begun showing positive trends in terms of demand for more lucrative high-end holidays.

According to the statistics, between January and September 2012, there were 691,608 tourist arrivals in the Maldives.  During September 2012, 76,806 visitors travelled to the Maldives – an increase of 6.9 percent over the same time last year.

In terms of regional demand, the ministry figures showed that European arrivals fell by 2.9 per cent between January and September to 376,674 people over the same period in 2011.  A five percent increase in traffic from Central and Eastern Europe was ultimately insufficient to offset double-digit declines in travellers from northern and southern European countries.

Arrivals from the Eastern Mediterranean region were also up between January and September by 10.4 percent to 5,191 people. In the region, tourists from Turkey and Israel coming to the Maldives increased by 7.6 percent and 21.8 percent respectively over the same period.

During September 2012, European arrivals overall fell 3.2 percent to 33,975 over the same time last year.

The statistics showed that the Asia Pacific region has continued to drive growth in visitors to the Maldives, with 275,343 arrivals between recorded January to September 2012 – an increase of 10.2 percent.

According to the figures, arrivals in September alone from the Asia Pacific region reached 38,483, up 17.5 percent on the same time last year.

Key to this regional growth has been demand from China, which for the first nine months of 2012 accounted for 24.5 percent of all tourism arrivals to the Maldives.

In the Americas, total arrivals from the region rose 12.3 percent to 18,375 for the first nine months of the year, with Brazil Canada and the US all posting growth. The US was the region’s largest market over the period with visitor numbers up 10 percent to 10,899 people.

Visitors from the Middle East were also up for the first nine months of the year by 54.6 percent over the same time in 2011, amounting to 16,211 people. However, visitor numbers for the region fell by 3.3 percent during September when compared to the same period of time in 2011.

Arrivals from Africa between January and September this year were up by 9.8 percent to 5,005 compared to the same period this year.

For every month of 2012 since February, resort occupancy has been down on a single figure basis, a trend continued into September with occupancy at the country’s island tourism properties falling 5.5 percent over the same period last year.

Occupancy rates have also fallen for hotels, guest houses and safari boats when compared to the nine month period between January and September 2011, according to the statistics.

Encouraging figures

Deputy Tourism Minister Mohamed Maleeh Jamal told Minivan News that the figures were encouraging for the industry. Maleeh stressed that this encouragement was not representative just of growth in Asia, but also due to the performance of key markets like Germany and Switzerland.

“Some 55 percent of traffic [during 2012] has still come from Europe,” he said.

However, even in markets like the UK, which for the first nine months of the year saw visitors fall by 13.7 percent to 67,987, Maleeh claimed the decline failed to reflect a changing customer demand for high-end holidays in the country.

Having recently returned from visiting London for the World Travel Market 2012 travel fair, Maleeh said that industry insiders and travel operators he had spoken to at the show identified a shift in the UK market towards more lucrative higher-cost packages.  He added that with the overall economic situation in Europe still uncertain, it was important to keep an industry presence in the region.

“We will be keeping a presence in these markets and wait for them to bounce back.  Countries like Germany and Switzerland have shown good growth,” he said.

Master plan

Along with celebrations to commemorate 40 years since the introduction of tourism, the ministry has said it also expects to unveil its fourth official tourism master plan by year-end. The document is anticipated to outline developments across the industry – dealing with the expansion of biospheres and other “value-adding” focuses – as well as an integrated plan to promote the destination internationally.

“We are working on the fourth tourism master plan in line with groups like the United Nations Development Programme (UNDP) and the World Bank to focus on a destination strategy,” Maleeh said.

Following February’s controversial transfer of power, the incoming government of President Dr Mohamed Waheed Hassan sought to utilise public relations groups and advertising to try and offset the impact of negative news headlines resulting from the change in government.

This focus has included agreeing a US$250,000 (Rf3.8million) advertising deal to promote the country’s tourism industry on the BBC through sponsorship of its weather services, as well as signing a £93,000 per month (US$150,000) contract with public relations group Ruder Finn to try and improve the country’s image internationally.

Having previously claimed that the “hard days” were over for Maldivian tourism, Maleeh said he hoped the government – currently facing increasing pressure to reduce its fiscal deficit by the International Monetary Fund (IMF) – would provide a sufficient promotional budget to support such plans.

“The Maldives should be present in two to three of the largest news sources, these are CNN, the BBC and the National Geographic channel,” he said.  “These are frequently watched by major investors. Tourism is vulnerable and we need to have continuous engagement and visibility, if not, it can be a case of out of sight out of mind.”

While unable to outline the exact scope of the new master plan, Maleeh said that as President Waheed this year announced a strategy to make the Maldives the world’s largest marine reserve within the next five years, the commitment could prove particularly beneficial to tourism.

“Since the foundation of tourism 40 years ago, the environment has always been hugely important to the Maldives. After 40 years the country is still pristine making us very popular with tourists and we welcome any actions to encourage maintaining this,” he said.

Maleeh added that the foundation of reserves in the country at destinations like Baa Atoll was helping the area become a “premium destination within a destination”, adding further value to properties located in an area of strong natural interest.

Along with the potential benefits of operating as a marine reserve, Maleed claimed that the country’s status of being a protected marine reserve would not itself impact on the type of tourism developments being sought in the Maldives. These plans have included ambitious proposals such as the construction of five man-made islands to support leisure developments including a 19-hole golf course in the Maldives.

Maleeh claimed that he did not think these type of projects would be threatened by the Maldives protected reserve status, with developers still being required to work within existing environmental laws that impose several restrictions on the amount of development possible on each island.

“All plans are required to undergo an Environmental Impact Assessment (EIA) and resort developers are very good at working within these parameters,” he said.

In Baa Atoll, which has been awarded the United Nations Educational, Scientific and Cultural Organization (UNESCO) Biosphere Reserve status, several resort operators have said they remain uncertain as to the direct impact protected marine areas may have on their operations.

Reethi Beach Resort General Manager Peter Gremes has previously told Dhonisaurus that while obtaining the UNESCO reserve status last year was a “prestigious” accolade for properties in the atoll, it was unlikely to impact visitor numbers on a significant basis.

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OPEC loan for Hithadhoo hospital finalised

A delegation from the OPEC Fund for International Development (OFID) has concluded a visit to the Maldives after signing a US$8.4 million (MVR 129million) loan agreement to finance the Hithadhoo Regional Hospital Project in Addu Atoll.

OFID Director-General Suleiman J. Al-Herbish met with President Dr Mohamed Waheed Hassan to discuss the fund’s current operations in the Maldives as well as further avenues for cooperation.

Suleiman said the new hospital would deliver a wide range of specialized and emergency medical services, benefiting around 76,000 people.

Permanent Secretary at the Ministry of Health Geela Ali said that the work on the 100-bed facility would upgrade the level of healthcare in the atoll to tertiary level.

Currently, this advanced level of healthcare is only provided in Male’s two hospitals – the privately operated ADK hospital and the state-run Indira Ghandi Memorial Hospital (IGMH).

Other than this, Maldivians can receive secondary of care in the country’s six regional hospitals. This includes Raa Atoll regional hospital which the ministry intends to begin renovating.

“This will be a huge project. We are currently seeking government funding for this,” explained Geela.

OFID is a finance institution established by the group of petroleum exporting states to channel aid to less-developed nations.

Previous loan support from the fund was given to upgrade Male’ international airport in 1999, and again in 2005 to extend Wataniya’s telecoms coverage.

A press release from the fund described the fund’s 35 year relationship with the Maldives during which time is has co-financed projects to strengthen the country’s agriculture, education, transportation a sanitation sectors.

“Under its Trade Finance Facility, OFID has participated under the International Islamic Finance Corporation’s syndication of US$25 million to assist the State Trading Organization, Maldives, in importing refined petroleum products. In addition, grant funding has provided emergency aid for tsunami victims and supported healthcare programs,” read the statement.

Chinese visit

As the OFID visit concluded, a high level Chinese delegation arrived as part of a three nation tour which will also take in Pakistan and Bangladesh.

The delegation is headed by Li Changchun who is China’s fifth highest-ranking leader and has been on the Standing Committee of the Political Bureau of the Communist Party of China Central Committee since 2002.

Chinese state media reported Li as lauding the exemplary nature of the Sino-Maldives relationship as a model for ties between larger and smaller nations.

“The development of relations between China and the Maldivians serves the fundamental interests of the two peoples as well as maintaining the regional peace, stability and prosperity,” Xinhua reported Li as saying upon his arrival at Ibrahim Nasir International Airport (INIA).

Li has since met with President Waheed who thanked him for China’s continuing assistance with the Maldives’ development, whilst welcoming Chinese investors to explore opportunities in the country.

Waheed expressed similar sentiment when paying his first official state visit to China last month during which he finalised a deal for US$500 million in aid, with promises for further assistance in the future.

The President’s Office website has confirmed that the Ministry of Housing has exchanged letters agreeing to a feasibility study for developing a road in the Laamu Atoll Gan to Fonadhoo stretch of islands.

A memorandum of understanding was also signed between the Chinese Ambassador Yu Hongyao and the Ministry of Environment and Energy concerning the provision of goods for addressing climate change.

Chinese relationships with the Maldives was established 40 years ago but has expanded rapidly over the past decade.

China leapfrogged the United Kingdom in 2010 to become the number one source of arrivals for the country’s travel industry.

China opened an embassy in Male’ in time for the opening of the SAARC summit last November, reciprocating the opening of a Maldivian mission in Beijing in 2007.

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Top-ranking Chinese official to visit Maldives

Top Chinese official Li Changchun will visit the Maldives this as part of a three nation tour which will also take in Pakistan and Bangladesh.

Li, described as China’s fifth highest-ranking leader, has been a member of the Standing Committee of the Political Bureau of the Communist Party of China Central Committee since 2002.

An official from the Chinese embassy in the Maldives has confirmed that Li will arrive in Male’ this weekend after being invited by the government.

The official said that the background to the visit was the 40th anniversary of Sino-Maldivian diplomatic ties, but explained that there were always many reasons behind such visits which include the strengthening of bilateral ties.

Chinese state media has today reported that Li is in Islamabad meeting President Asif Zardari in order to take Pakistani-Chinese cooperation to a higher level.

Often referred to as China’s propaganda chief, Forbes magazine describes Li as the man who “controls what 1.3 billion Chinese see, hear, [and] speak.”

Most famously, Li is said to be the man behind the censorship of the internet in China, better known as the “Great Firewall of China”.

Li is one of seven members of the current Politburo Standing Committee scheduled to retire at the 18th National Congress next month.

Fellow members of the Standing Committee have toured widely across Asia and the pacific during the past month.

President Dr Mohamed Waheed Hassan paid an official visit to China in late August as ties between the two nations continue to grow.

During this visit Waheed finalised the details on financial assistance to the Maldives worth $US500million (MVR7.7billion) with the promise of more to come.

China has become increasingly important to the Maldives in terms of tourism although analysts suggest that the Maldives also figures in China’s plans for domination of global sea lanes – often referred to as the string of pearls theory.

India has responded to enhanced Sino-Maldivian ties by reaffirming its traditional military links with the Indian Ocean nation, as well as offering its own financial assistance.

China leapfrogged the United Kingdom in 2010 to become the number one source of arrivals for the country’s travel industry.

Official figures reveal that China has provided 22.2 percent of all arrivals to the Indian Ocean nation this year – up 14.5 percent from last year.

A Chinese embassy opened in Male’ in time for the opening of the SAARC summit last November, reciprocating the opening of a Maldivian mission in Beijing in 2007.

The decision to open the embassy was announced during the visit of Wu Bangguo, the second highest ranking member of the current standing committee, May 2011.

Earlier this week, President Hu Jintao described ties between the nations as the “model of friendship between a big country and a small one.”

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‘China – Maldives ties model of friendship’: Chinese President

Speaking on the occasion of the 40th anniversary of the establishment of diplomatic relations between the Maldives and China, President Hu Jintao has described ties between the nations as the “model of friendship between a big country and a small one.”

The Press Trust of India (PTI) reports President Hu Jintao as saying that “China stands ready to work with Maldives to promote the friendship between the two nations to a higher level.”

A Chinese embassy opened in Male’ in time for the opening of the SAARC summit last November, reciprocating the opening of a Maldivian mission in Beijing in 2007.

Chinese state news agency Xinhua reported Hu as saying that China was ready to take the relationship to a higher level.

China leapfrogged the United Kingdom in 2010 to become the number one source of arrivals for the country’s travel industry.

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Vice president praises Chinese significance to Maldives development

Vice President Mohamed Waheed Deen spoke yesterday at a ceremony marking 63 years since the People’s Republic of China was founded, expressing gratitude for the technical and economic assistance the Maldives had been provided and pledging further cooperation between the two nations in the future.

At the special reception held at Trader’s Hotel in Male’ yesterday, the vice president also praised the speed and nature of democratic development within China – something he hoped to see emulated in the Maldives.

“I have no doubt your country is going in the right direction and leading the world,” he told attendees, which included business figures, senior government representatives and diplomats.

“Even if you look at the political changes in china they have proved that they are taking patient, calculative, constructive and very objective directions and I believe that is how the democracy must be developed, not very hastily.”

The vice president, a local philanthropist and owner of the Bandos Island Resort and Spa, also praised the growing economic significance of China to the Maldives in terms of trade and tourism income.

“I am pleased to note that China is currently the number one tourist market for the Maldives and I hope that the number of Chinese tourists travelling to the Maldives will continue to increase,” he said. “In addition, trade between the Maldives and China has increased significantly in the past few years and China remains one of the largest trading partners of the Maldives.”

The reception was the first of its kind to be held by China in the Maldives since the country opened its first full diplomatic mission in Male’ last year.

According to the vice president, 2012 also marks 40 years since China and the Maldives first established diplomatic ties.

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India defends its backyard in the Indian Ocean: Wall Street Journal

“The whole world is watching China’s confrontations in the South China Sea and the East China Sea—but India is watching with particular concern,” Harsh V. Pant, a defence studies professor for King’s College, London, writes for the Wall Street Journal.

“India has no territorial claims here per se, but one Indian official recently said that the South China Sea could be seen ‘as the antechamber of the Indian Ocean,’ given the flow of maritime traffic. New Delhi is nervous about Beijing’s threat to the freedom of navigation, and this is one reason it is strengthening ties with island nations in the Indian Ocean.

This month, Indian Defence Minister A.K. Antony travelled to the Maldives to shore up relations with the young democracy. He was ostensibly there to inaugurate a military hospital built with Indian assistance, but New Delhi used the occasion to make a slew of defence-related announcements.

Chiefly, Delhi will begin training Maldives’ air force and position a naval team in the islands to train Maldivian naval personnel. Mr Antony also said India would station a defence attaché in its Maldivian embassy, extend the deployment of a helicopter squadron in the islands for two more years, and help the Maldives government in its surveillance of its Exclusive Economic Zone, which extends for 200 nautical miles (370 km) from its shores.

All these take defence cooperation up to the next level. More importantly, they underscore India’s continuing commitment to Maldives, despite a somewhat contentious transfer of power earlier this year when its first democratically elected president Mohamed Nasheed resigned under pressure when protests broke out against him. Some saw this as a coup, but India isn’t taking sides. Some of this is sheer agnosticism on Delhi’s part—it doesn’t want to interfere in another nation’s internal affairs—but a lot of it is realpolitik too.

Read More…

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Maldives’ new defence policy rests on “Islam and national unity”: President Waheed

President Dr Mohamed Waheed Hassan yesterday described the Maldives’ first ever National Defence Policy as “the main axis of civil protection”, resting on a bedrock of Islam and national unity.

Waheed’s comments came during the official launch of the policy white papers at the Islamic Centre in Male’, yesterday morning.

In his speech, Waheed described the policies as “institutionalised embodiments of civil protection” which ought to be respected by all government bodies.

“Contained [within] are also important policies which protect individual, social and economic freedoms, and promote environmental conservation in conjunction with strategies for sustainable development,” said Waheed.

The President stressed that civil protection was not just the responsibility of a few institutions, highlighting the importance of “sharing common objectives, so as to facilitate adherence to a well-determined course of action.”

Waheed also launched the new Ministry of Defence and National Security website, which included further details of the policies.

The site, designed as a portal for the Ministry’s public services, stated that the Defence and Security policies are available on its own as well as the President’s Office website.

Neither document was available at the time of press although Colonel Abdul Raheem of the Maldives National Defence Force (MNDF) told Minivan News that they would be available soon.

When asked why the government had decided to produce these policy documents, the first time the country has done so, Raheem said that it was a standard practice in other countries.

No spokesman for the President’s Office was available at the time of press.

“The National Security Policy outlines a fundamental and comprehensive framework on inter-related issues and concerns that may impinge on national security,” reported the Ministry’s statement.

“The National Defence Policy outlines the way forward to fulfill the mandate of the Ministry of Defence and National Security and gives policy guidance to the three major components under the Ministry; the Maldives National Defence Force, Disaster Management Center and Aviation Security Command,” it continued.

The statement described the National Security Policy as providing national priorities in order to guide related policies across all government departments.

“It guides the national decision making process so that the sovereignty and territorial integrity, the well-being of the people and state institutions and other national interests are protected and enhanced,” read the statement.

State Minister for Islamic Affairs Sheikh Mohamed Shaheem Ali told Minivan News that he fully supported the new National Defence Policy.

“I feel it is important to get protection from acts of terrorism and extremism”, he said

Indian Defence Minister to visit

The Minister of Defence and National Security, Mohamed Nazim, has this week invited Indian Defence Minister A.K. Anthony to visit the country to officiate at the opening of the Maldivian Military Hospital as well as to the lay the foundation stone for the new MNDF training academy.

An Indian government press release has revealed that Anthony will be accompanied by a high level delegation which will include Defence Secretary Shashi Kant Sharma.

Having last visited the Maldives in 2009, international headlines have linked this visit to the rapidly expanding relations between the Maldives and China.

Waheed visited China at the start of the month, where he finalised agreements for a package of loans amounting to $500million (MVR7.7billion).

Despite Sino-Maldivian links having grown largely due to China providing more tourists to the Maldives than any other nation, the enhanced ties have led to speculation regarding Chinese naval ambitions in the Indian Ocean – often referred to as the ‘string of pearls’ theory.

Former Maldivian Foreign Minister Dr Ahmed Shaheed acknowledged at the time of Waheed’s state visit that India would be worried after its perceived diplomatic failings during the Maldives’ recent political upheavals.

However, Shaheed added that increased economic ties in the absence of new military ones did not represent a policy shift by the new government.

The Indian government this week extended a further $25million to the Maldives as part of a $100million credit facility agreed last November.

In a comment piece for local paper Haveeru today, Special Advisor to the President Dr Hassan Saeed lamented the government’s growing reliance on foreign aid.

“The reality is that our long held beliefs and values are today tradable commodities. Our sovereignty is compromised and we enjoy far less respect,” wrote Dr Hassan.

The Indian government reported that its defense minister would seek to strengthen cooperation in the defence sector during his visit to the Maldives.

It drew attention to the regular interactions between the countries’ military forces, which this year has included joint naval patrols of the Maldives’ Exclusive Economic Zone (EEZ).

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