Chinese cultural items gifted to Maldives

China has today gifted a number of cultural items to the Maldives, following discussions between the countries’ respective first ladies during President Xi Jinpeng’s visit in September.

During a ceremony held at the Ministry of Foreign Affairs this morning, Chinese Ambassador Wang Fukang signed an official certificate marking the handing over of the gifts, which included books, ethnic costumes, musical instruments, and Chinese crafts.

“During the meetings, both our countries’ leaders have made a decision to build a future-oriented, all-round, cooperative friendship,” Sun Online reported Wang as saying during the ceremony.

“We each promote our bilateral relations to new heights. So from our Chinese government we are very satisfied with our bilateral relations.”

Source: Sun Online

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Maldives backs new Chinese investment bank, pursues free trade deal

The Maldives is to back a Chinese-initiated international finance institution to be called the Asian Infrastructure Investment Bank (AIIB) while ministers have confirmed a free trade agreement is being pursued.

At a press conference today, the economic council revealed that the Maldives had asked to be included as a founding member of the proposed bank alongside the existing 21 countries, which includes both China and India.

Minister of Fisheries and Agriculture Dr Mohamed Shainee also revealed that China was to become the Maldives first free trade partner, demonstrating the pair’s excellent bilateral relations.

The requests were put forward during a recent visit to China by the Economic Council where discussions were held on proceeding with Chinese-assisted projects, while the Maldives officially signed up to the Maritime Silk Road project.

The AIIB, which is to start up with a proposed US$100 billion capital, is purposed with financing infrastructure projects in the Asia Pacific region.

The bank has been described by some media outlets as having been set up with the intentions of increasing Chinese influence in Asia at the expense of the IMF, ADB, and the World Bank.

The economic council today confirmed that the Maldives has officially agreed to participate in China’s silk road trade route – the third country to do so, although Chinese state media has reported more than 50 states as expressing interest.

The two countries have also agreed to engage upon free trade in the future, explained the council.

“The biggest advantage of the free trade will go towards fishermen. With free trade and the 12 percent export duty will be gone, thus the 12 percent becomes profit for fishermen,” said Shainee.

When questioned about the potential economic disadvantages which might occur because of a free trade agreement, Minister at the President’s office Mohamed Shareef said that both governments will make sure that the agreement leads to a ‘win-win’ for the countries.

“I want to mention that the free trade talks were initiated by the Maldives,” said Shareef. “China is willing to give us a lot of leeway into how we structure the agreement.”

Shareef also said – citing Chinese sources – that the Maldives is the number one South Asian destination for Chinese tourists at the moment. Chinese tourists currently make up around one third of all tourist arrivals to the Maldives.

The economic council also stated that work on the proposed new terminal at Ibrahim Nasir International Airport (INIA) is to begin in the next six to seven months and that the request for the loan to finance the project has been submitted to the Chinese Exim bank.

The council members also reiterated the importance of the proposed Malé-Hulhulé Bridge, saying that there is good progress and that the government is aiming to open it by the year 2017.



Related to this story

Silk road deal to be concluded in China-Maldives economic committee

Chinese President Xi Jinping calls for Maldives involvement in 21st century maritime silk road

President Yameen slams “Western colonial powers,” declares foreign policy shift to East

Agreements on bridge and airport penned during Chinese president’s visit

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Laamu Atoll identified as potential SEZ as Yameen inaugurates link road

President Abdulla Yameen yesterday inaugurated the Laamu Atoll link road, revealing that the area has also been identified as a potential special economic zone.

The president stated that the road – to be built and and financed by the Chinese government – was symbolic of the close ‎friendship between the two nations.

Meanwhile, the Maldives has officially signed up to China’s Maritime Silk Route project, with economic development minister Mohamed Saeed signing an MoU during the first meeting of the Joint Committee on Trade and Economic Cooperation in Beijing today.

The agreement will allow the Maldives to take an “active role” in the construction of the project as well as sharing information on national economic development plans, explained the foreign ministry.

Chinese state media have previously reported that the route will pass the intended site of the Ihavandhippolhu Integrated Development Project – or ‘iHavan’ – in the Maldives northernmost atoll.

President Xi Jinpeng has repeatedly called upon the Maldives to become involved in the project, which Xinhua has reported to have the support of over 50 countries.

One such urging came during Xi’s state visit to the Maldives in September – the first by a Chinese head of state, representing the rapidly expanding ties between the two countries.

The Laamu link road project was also unveiled during Xi’s visit. The 15.1km road will become the longest in the country, linking four of the atoll’s 13 administrative islands.

President Yameen said yesterday that the ‎road development project was integral to realising the developmental ‎aspirations of the atoll. He also announced that the area may be selected as a special economic zone.

Facilitated by the government’s flagship Special Economic Zones Act, the proposed deregulated areas have provoked criticism on grounds of transparency and the disempowerment of local authorities.

A minimum investment of US$150 million is required for SEZ developments, with no zones having been announced since the act was passed in August.

The president also noted during yesterday’s inauguration ceremony that the government’s Thumburi ‘Integrated Resort Development’ project – touted as a ‘responsible’ way to expand mid-market tourism – was also located in the atoll.

Signs of burgeoning China-Maldives ties were evident elsewhere yesterday as representatives of the Chinese People’s Liberation Army met with Minister of Defence Colonel (retired) Mohamed Nazim to discuss the acquisition of sea ambulances.

After pledging to provide ambulances in all 26 of the country’s atolls, the government has this year introduced services in six. Local media reported that additional vessels will be purchased with Chinese assistance.

As well as pledges to assist with the redevelopment of Ibrahim Nasir International Airport and construction of the Malé-Hulhulé bridge, in the past two months China has gifted the Maldives 200,000 energy efficient lights, 200 waste bins, fresh water during the recent water crisis, and US$500,000 towards the subsequent relief fund.



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Silk road deal to be concluded in China-Maldives economic committee

The Maldives will officially join China’s Maritime Silk Road Project during the first ever China-Maldives joint commission on economy and trade in Beijing today.

A high level delegation of cabinet ministers left Malé yesterday evening (December 14), telling local media that the Maldives would officially join the trade route.

“With projects such as oil exploration and bridge construction in the agenda for discussion, the meeting will benefit economies of both countries. This is a great achievement to us as well,” Minister of Economic Development Mohamed Saeed told Haveeru.

An MoU establishing a Joint Committee on Trade and Economic Cooperation was one of a raft of agreements signed during the historic visit of President Xi Jinpeng in September.

The Maldivian delegation sent to Beijing also includes Minister of Fisheries and Agriculture Dr Mohamed Shainee, and Minister at the President’s Office Mohamed Hussein Shareef.

Shainee told media that discussions would be held with two Chinese companies regarding the search for oil, adding that the opportunity for neighbouring countries to join the search would be available.

India has already offered to assist in oil exploration within Maldivian territorial waters. The announcement that the administration of President Yameen would resume the Maldives’ decades-long search for oil was followed by a seismic survey by a German research vessel in August.

China’s Silk Road scheme is said to have caused concern in India, though Chinese state media has reported that more than 50 states have expressed willingness to join the project this year.

Shifting east

President Xi has repeatedly urged the Maldives to get involved in the trade route, which will link China to the east coast of Africa and the Mediterranean and is said to pass the Maldives’ northernmost atoll – the proposed site of the Ihavandhippolhu Integrated Development Project.

The ‘iHavan’ transshipment port – one of five mega-projects envisioned by the government – is designed to take advantage of the US$18 trillion worth of goods transported across the seven degree channel annually.

Attempts by the Yameen administration to attract foreign investors – which has included the introduction of the Special Economic Zones Act – have yet to result in any major deals, though China has signed agreements relating to the promotion of the Malé-Hulhulé bridge and the development of Ibrahim Nasir International Airport (INIA).

After a team of Chinese surveyors carried out a feasibility study into the bridge project last month, ministers last night told the press that they would seek to expedite the project while in Beijing.

Additionally, attempts would be made to secure deals for the development of the runway at INIA, the delegation explained. Consultants from Singapore’s Changi International Airport have been hired to oversee the development, with the tourism minister citing their experience working with Chinese contractors.

The delegation also explained that discussions would be held with China’s Ministry of Commerce regarding a free-trade areas, as well as discussing obtaining cheaper oil.

President Yameen has made clear his intention to further pursue already rapidly expanding ties with China, announcing a policy shift to the east while criticising the interference of western powers. China also accounts for one third of all tourists visiting the Maldives.

Yameen last week laid the foundations for 704 housing units in Hulhumalé, part of an arrangement for 1500 to be built by ‎the China Machinery Engineering Corporation as part of the further development of Hulhumalé – another of the government’s mega-projects.



Related to this story

Agreements on bridge and airport penned during Chinese president’s visit

Chinese President Xi Jinping calls for Maldives involvement in 21st century maritime silk road

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UN Maldives commends government’s response in water crisis, opposition condemns

The United Nations in the Maldives has commended relief efforts during the Malé water crisis, though the opposition has attacked the governments preparedness and subsequent handling of events.

In a press release today, the UN in Maldives commended the “outstanding response” of the government, noting that measures were also being taken to address the needs of vulnerable and special needs population.

“The situation does not warrant any humanitarian assistance at the moment. UN is working with the Government to monitor closely that there will be no deterioration of the situation,” the statement continued.

The President’s Office announced today that the closure of government offices would continue for the rest of the week, while offers of foreign assistance have continued to pour in.

Meanwhile, the opposition Maldivian Democratic Party (MDP) condemned government efforts – in particular the decision to continue billing residents for water usage.

“Water should be provided free of charge until the water crisis is resolved,” said Rozaina while speaking at an MDP press conference.

Minister of Defense Colonel (retired) Mohamed Nazim said this morning that the Malé Water and Sewerage Company’s (MWSC) board of governors have decided to implement a 30 percent discount on water transactions for the month of December.

Addressing the public for the first time during the crisis yesterday, President Abdulla Yameen noted that getting water supplies to the upper floors of buildings had been problematic.

MWSC’s decision contradicts a company statement released two days ago (December 6) saying customers would not be charged until the current crisis is over in order to provide relief for the ground floor level residents who have been donating water.

MWSC charges a progressive rate on the water usage, which rises as the usage increases over a MVR30 fixed monthly charge. The rate can go as high as MVR95 per cubic meter when usage increases over 500 liters.

Relief

Nazim also revealed governments plans to set up a ‘Malé water crisis management fund’ to collect donations in order to recover the MVR300 million (US$20 million) spent on the management of the crisis.

Rozaina criticised the estimated figure of US$20 million by saying that the MDP demanded a technical viewpoint on the damages and an explanation of why US$20 million is required for the repairs. The party has asked whether MWSC’s facilities were insured.

An unnamed Saudi Arabian has already donated US$ 1 million to the fund while local business group Champa Brothers pledged to provide US$100,000.

The MDP has also slammed the government’s failure to give a set date for the resumption of normal services, with members of the president’s task force telling local media yesterday that the issue could not be solved within a “politically desirable” timeframe.

Continuing its extensive relief efforts, Indian navy fleet tanker INS Deepak arrived yesterday bringing with it 1,250 tons of water. The water was then pumped to tanks in Malé through 400 meters of pipe.

The ship – which also has RO capabilities – is now at anchorage near Malé where it be producing 100 tons of water per day which will then be transported to the capital via barges.

Indian High Commissioner to the Maldives, MR Rajeev Shahare – speaking aboard INS Deepak yesterday – said that the Indian government had offered technical assistance with the repairs which was refused by the government saying that they are consulting a Japanese firm.

So far, 10 Indian military airplanes have landed at Ibrahim Nasir International Airport (INIA) bringing with them more than 200 tons of water.

State Bank of India (SBI) also joined relief efforts today, distributing 7.5 tons of water.

A Chinese vessel which arrived last night capable of producing 90 tons of water per day delivered 600 tons of water today to the capital. Two Chinese military flights landed last night with 40 tons of water in between them.

A Bangladeshi military vessel with 5 desalination plants and one hundred tonnes of water is also due to arrive on Thursday (December 11).

Meanwhile, President’s Office Spokesperson Ahmed Muaz announced today hat the government has decided to close all its offices in Malé for the rest of the week after considering the difficulties people could face as a result of the current water problems in Malé.

Muaz noted said that the President’s Office will be open from 10 am to 1pm,while the Maldives Monetary Authority has also announced that it and other banks will be between 11am to 2pm to provide banking services for the public.



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Maldivian journalists told that China will not interfere with Maldives’ sovereignty

Maldivian journalists in China have been told that the country will not interfere in the domestic affairs of the Maldives.

Meeting with Maldivian journalists, Director of the Chinese Foreign Ministry’s Asian Department Xin Wang said that a lot had been planned between the two nations.

“China is just helping the Maldives pull itself up. It will be Maldives that makes the final decision on everything relevant to this development,” Haveeru reported Xin as saying.

President Abdulla Yameen announced earlier this month that increased ties with China were part of a policy of looking east. Criticising the interference of “Western colonial powers”, Yameen noted that working with China does not bring the same challenges.

Source: Haveeru

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China donates 200,000 energy efficient lights

China has today pledged to provide the Maldives with 200,000 energy efficient LED lights as part of an MoU for the provision of goods to assist in combatting climate change.

“Approximately MVR300 is estimated to be saved if the LED lights are used for 8 hours per day and if 75% of the LED lights which has been provided are used, MVR49 million would be saved,” read a press release from the Ministry of Environment and Energy.

The ministry last month launched the ‘It’s cool at 25’ campaign to reduce energy consumption in the country and potentially save MVR8,000 (US$519) – or seven percent – from household electricity bills.

Minister of Environment and Energy Throriq Ibrahim signed the MoU on behalf of the government, while Deputy Head of Commission at the Chinese Embassy in Maldives Liu Ching signed on behalf of the Chinese government.

In addition to providing an additional 250,000 LED lights in 2013 – subsequently used across 164 islands – China has more recently donated 200 waste bins worth MVR500,000 (US$32,425) to the Maldives.

As well as a steady stream of grant aid, the Chinese and Maldivian governments have recently penned deals regarding military aid and the development of Ibrahim Nasir International Airport, as well as the Chinese promising to “favorably consider” financing the Malé-Hulhulé bridge project.

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President Yameen slams “Western colonial powers,” declares foreign policy shift to East

The European Union (EU) imposed restrictions on Maldivian export of canned tuna for refusing to change or abandon Islamic principles, President Abdulla Yameen claimed today, declaring a foreign policy shift to the East.

In his address to the nation on the occasion of Republic Day, President Yameen said economic cooperation with China does not involve the same challenges to remaining an Islamic state posed by “Western colonial powers”.

“Participating in business with China does not involve any such compulsion for us,” Yameen said at a ceremony at the Dharubaaruge convention centre this morning.

Yameen referred to the EU’s refusal to extend the duty-free status of imported fish from the Maldives following the country’s failure to comply with international conventions concerning freedom of religion.

Until January 2014, fish exports to the EU – the single largest export partner by value – were duty-free under the Generalised System of Preferences (GSP) programme, a non-reciprocal trade agreement extended to developing countries.

Last year, the government’s application for a year’s extension under the ‘GSP Plus’ program was declined as it had not ratified all 27 required international conventions. The Maldives holds reservations concerning the freedom of religion component of the International Covenant on Civil and Political Rights (ICCPR).

Former Fisheries Minister Shafeeu told Minivan News in November 2013 that the Maldives would lose its competitive advantage over the larger fishing fleets of nearby Sri Lanka and Thailand with a 14-20 tariff on fish imports, and reduce profits to “a marginal value”.

President Yameen said there was “no way forward” for the country regarding the issue.

“The government’s thinking is changing towards the East,” he said.

Under the Maldivian Constitution, all citizens are required to be Sunni Muslim and the practice of other religions as well as places of worship are prohibited. Customs authorities forbid the import of religious items and scan the baggage of tourists arriving at the airport.

Former Minister Shafeeu explained last year that the EU’s move was not unexpected as Maldivian fisheries had been given a three year extension of its duty-free status after graduating from the UN’s definition of a ‘least developed’ country to ‘middle income’ in 2011.

Silk Route

The government decided to participate in the Chinese 21st Century Maritime Silk Route initiative because China is currently the strongest and fastest growing economy in the world, President Yameen said.

As a result, Yameen continued, the government believes that the “multi-million dollar infrastructure investment” needed for economic development would “arrive through this door.”

Participation in the Silk Road initiative would not adversely affect either the Maldives independence and sovereignty or the Islamic identity of the nation, he insisted.

Ahead of his maiden state visit in September, Chinese President Xi Jingping called on the Maldives “to get actively involved” in the creation of a maritime trade route linking China to the east coast of Africa and the Mediterranean.

Meanwhile, former President Mohamed Nasheed has criticised the decision to join the Silk Route initiative, contending that it would threaten Indian Ocean security and risk putting the Maldives in the middle of war or disputes between Asian powers.

“Indian Ocean stability depends on a firm Indian hand. President Yameen must reverse his decision on Maldives being a party to the Silk Route,” the opposition leader tweeted on November 8.

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Chinese documents show silk route was discussed with India: Foreign ministry

The Maldives Ministry of Foreign Affairs claims there is evidence that the Maritime Silk Road was discussed during Chinese President Xi Jinpeng’s visit to India in September.

“Publicly available documents clearly indicate that the maritime silk route was one of the points of discussion during the Chinese Presidential visit to India,” read today’s press release.

Controversy over the issue began last weekend after India rebutted suggestions made in the Majlis by foreign minister Dunya Maumoon that it had discussed participating in the proposed trade route.

The ministry today referred to a press release from the Chinese Ministry of Foreign Affairs, dated September 18, which detailed the talks between the heads of state before including what appear to be unattributed quotes from President Xi himself.

“Both sides should accelerate the construction of the Bangladesh-China-India-Myanmar (BCIM) Economic Corridor, conduct cooperation within the frameworks such as the Silk Road Economic Belt, the Maritime Silk Road of the 21st Century and the Asian Infrastructure Investment Bank to promote the process of regional economic integration and connectivity,” read the Chinese foreign ministry press release.

However, comments from the Indian minister of external affairs released by the Indian High Commission in Malé on November 7 stated the issue “was neither raised nor discussed” during President Xi’s meeting with Prime Minister Narendra Modi.

A 28 point official joint statement released at the conclusion of the September visit also failed to mention the silk road initiative. The statement has not been published by the Chinese foreign ministry.

Shortly after India’s rebuttal, the Maldives Ministry of Foreign Affairs responded by noting Dunya’s “concern if her choice of words had led to any confusion”.

Today’s statement from the ministry followed the opposition Maldivian Democratic Party’s (MDP) announcement that it would bring a no-confidence motion against the foreign minister in the Majlis, as well as calling on the speaker to prosecute her under the Privileges Act.

“The people of Maldives is gravely concerned with MDP and MDP sympathetic media pushing forward the interest of a foreign country while ignoring the Maldivian interests,” added today’s foreign ministry statement.

Minister at the President’s Office Ibrahim Shareef, yesterday explained that the “false” allegations spread by the opposition were being shared with both the Indian and Chinese governments.

“Everything they write, be it written in Dhivehi, have been translated and shared with the relevant authorities.I think it is about time they start preparing responses to the international community, which is going to demand answers soon,” explained Shareef.

Fellow cabinet member Dr Mohamed Shainee had told the media on Sunday November 9 that the Indian response to the comments were not necessarily indicative of the government’s view.

“We saw the news recently where the minister of a neighbouring country said something and it was said that it wasn’t the government’s view but the view of an individual minister,” said Shainee during a Progressive Party of Maldives (PPM) press conference.

Minivan News was unable to obtain comment from the Indian High Commission today, with official procedures requiring approval from New Delhi before the issuance of public statements.

The PPM had accused the opposition of twisting the story in order to harness attention from the international community and to divert attention from the one year anniversary of President Abdulla Yameen’s term.

Yameen has responded favourably to urgings from the Chinese government to join the Silk Road scheme, which seeks to create both land and maritime trade routes linking China to the east coast of Africa and the Mediterranean.

Today’s foreign ministry statement concluded by reiterating that Yameen’s decision to participate was taken with the aim of protecting Maldivian sovereignty while ensuring that national and regional security would be considered.

“[A]s Maldivian national security is closely linked to the Indian Ocean’s security, the government will engage in discussion with all relevant nations before making decisions which might endanger the security of the region.”

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