Tag: china

President seeks Chinese free aid for Hulhumalé bridge project

The government is seeking concessional or free aid from the Chinese government to finance “a large portion” of a project to build a bridge connecting the capital Malé and Hulhumalé, President Yameen has revealed.

Speaking to reporters on Thursday night (August 14) prior to departing for China to attend the opening ceremony of the Youth Olympic Games, Yameen explained that the Chinese government assured assistance and inquired ahead of the visit about “the most important project for our government.”

“So we discussed amongst ourselves and agreed that the most important project is the ‘youth city’ and the bridge between Malé and Hulhumalé as part of efforts to ease housing [shortage] for the people,” he said.

Yameen noted that as “all major Chinese companies are government companies” – referring to proposals submitted by Chinese companies expressing interest in the project – Chinese corporations would undertake the project with the “blessing” of the Chinese government and would be able to secure loan facilities through “generous concessional assistance”.

The government delayed awarding the project until after the China trip for this reason, he added, during which official talks would take place.

In addition to meeting the Chinese President, Yameen said the Chinese government has made “arrangements” for meetings with business leaders to discuss planned ‘mega projects.’

If the bridge project is to be awarded “under commercial terms,” Yameen said the government has “solid three proposals”.

However, Yameen expressed confidence of securing assistance for the project during the official talks.

Asked for an estimated date for commencement of the project, Yameen said that the talks so far had been “unofficial” but noted that an engineering team would arrive as soon as the Chinese government gives the “green signal” and a feasibility study would be conducted.

Yameen said he expected the project to begin before the end of the year.

Chinese assistance could be either in the form of grant aid or a loan facility from the Chinese EXIM Bank at a low interest rate, he explained.

According to the President’s Office, Yameen was greeted upon arrival at Nanjing Airport by the “‎Vice Governor of Jiangsu Province, ‎Mr. Fu Ziying, Protocol Ambassador of ‎Nanjing Youth Olympic Games, Mr. Gao Zhansheng, Deputy Secretary ‎General of Youth Olympic Games Organising Committee, Mr. Zhou Xu ‎and the Vice Director General of Jiangsu Province, Mr. Sun Yi.”

Yameen also attended a dinner hosted in his honour by the ‎MIND Group last night. ‎

Silk Route

In addition to the bridge project, the government also expects to upgrade the Ibrahim Nasir International Airport with a new runway and a new terminal, Yameen said.

The government has also formulated a project to provide electricity to the Greater Malé Region – including Hulhumalé, Vilimalé, Thilafushi, and Gulhifalhu – from a “single grid” and generate about 500 megawatts, he revealed.

A number of Chinese companies have meanwhile sought information regarding the ‘iHavan’ transhipment port project, Yameen said, adding that he believed various components of the project would be awarded to different parties.

Other projects that would be discussed with the Chinese include the establishment of “a data bank” through the “Smart Maldives Project,” he continued.

Referring to the Chinese ‘New Silk Road’ project, Yameen said the government was “very interested” in participating in the initiative.

Yameen also revealed that a number of bilateral agreements would be signed during the visit, including a framework agreement on trade assistance, while Chinese assistance in providing police vehicles would be “formalised”.

Chinese news agency Xinhua reported yesterday that China’s maritime ‘Silk Route’ would pass through the Ihavandhippolhu Integrated Development Project or ‘iHavan’ in the northernmost atoll in the Maldives.

“The design of the project seeks to capitalise on the location of the atoll, which lies on the seven-degree channel through which the main East-West shipping routes connecting Southeast Asia and China to the Middle East and Europe,” reported Xinhua.

A transhipment port in the northernmost atoll would benefit from “the growing trade volumes passing through the region in the wake of strong growth in China and India,” Xinhua noted, adding that an export processing zone in iHavan would enjoy “duty free access” to South Asia through the South Asian Free Trade Arrangement (SAFTA).

“Our positions at the UN and other key multilateral forums highlight the close cooperation between our two countries,” Yameen told Xinhua in an exclusive interview.

“Sino-Maldives relations have grown from strength to strength in recent decades, including high-level exchanges and mutual cooperation pacts to sustain regular exchanges.”

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Chinese envoy sees expanded China-Maldives economic cooperation: People Daily

Chinese Ambassador Wang Fukang has told Chinese news agency Xinhua that China and the Maldives are in a position to expand economic cooperation across wide areas.

“The ambassador said that the current Maldivian government is trying to diversify its single economic structure and is committed to attract more foreign investments, including those coming from China,” wrote the state news agency.

“Wang noted that since Maldives is located in the heart of the Indian Ocean, it is an ideal hub for trade between East and the West and that every year a large number of cargo ships pass through the Maldivian territorial waters.

Since Maldives is also a member of South Asian Association for Regional Cooperation (SAARC), it enjoys preferential tax in the region. With the help of these benefits, the Maldivian government aims to actively attract foreign investments, establish special economic zones and develop transshipment and manufacturing industries.

The Maldivian government organized the first “Maldives Investment Forum” in Singapore in April, promoting five mega- projects, including the special economic zones, expansion of Ibrahim Nasir International Airport, Hulhumale’ Phase II development, expansion of Male Harbor and oil exploration.

Currently, the Maldivian government is formulating a Special Economic Zone Bill which aims to provide more incentives to foreign investors in terms of tax breaks, relaxed financial requirements and preferential land use.

Ambassador Wang stressed that China and Maldives could focus on enhancing cooperation in three areas.

‘The first is tourism cooperation. Since 2010, China has remained the largest source of tourist arrivals in the Maldives. In 2013 alone, more than 330,000 Chinese tourists visited Maldives. In the future, both sides could encourage more Chinese tourists to visit Maldives. Maldives could attract potential Chinese companies to invest in the tourism sector of the country,’ Wang said.

The second area for cooperation between the two countries is infrastructure development.The new Maldivian government could initiate large-scale infrastructure projects where Chinese enterprises could participate, he said.

The third area is maritime cooperation. Wang said that China is willing to train maritime personnel, discuss and sign memorandums of understanding in the area of maritime cooperation, strengthening cooperation in fisheries, marine research, protection of ecology and environment as well as climate change.”

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President Yameen to visit China in August

President Abdulla Yameen is scheduled to visit China in August on the invitation of Chinese President Xi Jinping, the President’s Office has announced.

Yameen is to hold official talks with China and attend the opening ceremony of Summer Youth Olympic Games to be held in Nanjing from August 16 – 28.

“In addition, the president will participate in many activities on the sidelines of official talks. At a time when the government is preparing to begin many development projects, the president visiting a friendly country like China, which has contributed immensely to the development of Maldives, will prove most useful,” President’s Office Spokesperson Ibrahim Muaz Ali told Haveeru.

Relations between Maldives and China have seen a rise in recent years, with increased Chinese investment and a growth in tourist arrivals from China.

Tourism Minister Ahmed Adeeb said the government is seeking a US$ 400 million from China to develop the Ibrahim Nasir International Airport (INIA) and three Chinese companies have recently expressed interest in building a bridge between Malé and suburb Hulhumalé.

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Tourist arrivals reach half a million in 2014

Tourist arrivals in 2014 reached half a million at the end of May, registering an increase of 11.9 percent compared to the same period in 2013, the Ministry of Tourism has revealed.

“By individual market performances, China continues to show remarkable performances maintaining its number one position as the market leader with more than 27 percent shares. At the end of May 2014, a total of 141,249 tourists arrived in Maldives from China, which was 23.3 percent increase over the same period of 2013,” the ministry noted.

The Maldives welcomed a total of 518,166 guests from January to May 2014 with Europe contributing 48.3 percent of arrivals.

However, the Asia and Pacific region overtook Europe in the month of May with 55 percent of arrivals or 50,354 tourists.

Total arrivals from the region from January to May (229,847) also increased 24.7 percent compared to the same period last year.

“India, Japan and Korea were the second, third and fourth markets respectively from this region. Indian market saw an increase of 13.1 percent during the period in review contributing 3.5 percent as market shares at the end of the period.”

The Tourism Ministry also noted that the number of registered tourist establishments at the end of May was 460 with 30,510 beds, “out of which on average 291 establishments with a sum total of 27,004 beds were operational during the period in review.”

“These include 105 tourist resorts (23,029 beds), 17 hotels (1,510 beds), 112 guest houses (1,539 beds) and 57 safari vessels (927 beds),” the ministry revealed.

“The overall bed nights of these establishments saw an increase of 5.9 percent during the period reaching a total of 3,262,667 nights. While the occupancy rate recorded an increase of 2.3 percent to attain an average of 80.2 percent for the period, average duration of stay of the tourists saw a decline of 0.4 percent. The average duration of stay for the period was 6.3 days.”

Meanwhile, in its monthly economic review, the Maldives Monetary Authority (MMA) noted that tourist arrivals in May reached 91,296 visitors, which was an increase of 15 percent in annual terms.

“However, when compared to the previous month tourist arrivals showed a decline of 13 percent. The annual increase in arrival was contributed by the increase in the number of arrivals from Asia, despite the decline in number of arrivals from Europe,” the central bank observed.

“In May 2014, total bed nights rose by 4 percent in annual terms while the average duration of stay declined by 9 percent. With the increase in bed nights, the occupancy rate increased marginally to 68 percent in May 2014 compared to the same period last year.”

Chinese market

A consultation meeting was meanwhile held earlier this month – facilitated by Mega Maldives Airlines – between Maldivian government representatives and Chinese travel agents to discuss the potential of further increasing Chinese tourists to the country.

The Maldives was represented by Deputy Tourism Minister Hussain Lirar and Maldives Marketing and Public Relations Corporation (MMPRC) Managing Director Abdulla while the travel agents included CYTS, CAISSA, Russian Vision, Beijing Sunshine, Wendy Feeling, CTRIP, and Tuniu, Mega Maldives noted in a press release.

According to the airline, “significant ground work was done to address the concerns raised by the market as well as working on ways in which both parties can work to further improve the market.”

The government’s recently introduced guest house island policy was meanwhile received with enthusiasm by the Chinese tour operators.

“The agents were enthusiastic about the development of 2000 bed capacity in the mid-market range while at the same time retaining the resort concept and were keen to work with the local partners to block rooms in the future,” the statement said.

“The agents highlighted the importance of further marketing campaigns in China and developing a safe environment for the Chinese tourists.  The agents also further emphasized the importance of having more Chinese speakers in the resorts and airports that are equipped to give safety information to the tourists.”

Mega Maldives Airlines CEO George Weinmann meanwhile reportedly proposed incorporating a Travel Industry China-Maldives Association together with the Chinese travel agents and industry partners in the Maldives.

“The seminar was concluded with both parties agreeing to continue the dialogue to further improve the Chinese tourism arrivals to the Maldives,” the statement read.

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Vice president continues search for investors during China visit

President Dr Mohamed Jameel Ahmed has attended the 9th China-South Asia Business Forum during his official visit to China, reiterating the government’s focus on increasing foreign investments and strengthening the economy.

Speaking at the event, Jameel stated that his government prioritised economic transformation, youth empowerment, and domestic security, read a statement on the official President’s Office website.

He further spoke of the government’s aim to encourage foreign investment and capital in order to implement the Yameen administration’s economic development programmes and projects.

President Abdulla Yameen has promised a number of ‘mega projects’ during his term, pledging legislation to create a more welcoming investor climate, and organising a landmark investment forum in Singapore in April in order to find potential foreign investors.

The vice president further stated that corporate China has shown interest in engaging in infrastructure development projects in the Maldives. He assured Chinese investors that the government would do all possible to ensure a “flexible and efficient investment climate”.

To this end, the government last week introduced legislation to create special economic zones (SEZ) in strategic locations, with Economic Minister Mohamed Saeed – also present on the China trip – suggesting that the move might help the country end its reliance on tourism.

Jameel noted that China has been the number one tourism market for the Maldives since 2010, predicting that the number of Chinese arrivals – accounting for one in every four tourists in 2014 – will continue to grow.

During the trip, Jameel has also attended the 2nd China-South Asia Expo, where he repeated his belief that foreign investment is crucial for economic growth, private sector development and wealth creation.

“Our government firmly believes that broad based, private sector-led growth is essential to achieving faster development progress and to transform the economy from where it is today,” he is quoted as saying.

The details of some of the ‘mega projects’ were explained to the Chinese audience, with Jameel discussing the  ‘iHavan’ project – a regional development project in the northern atolls, potential oil and gas exploration projects, and plans to redevelop the Ibrahim Nasir International Airport.

Last month, the Maldives Airports Company (MACL) signed an agreement with China’s state-owned engineering and construction company, Synohydro, to build a US$9 million parking apron at the Ibrahim Nasir International Airport.

In addition to the forums, Jameel also paid a visit to the Governor of Yunnan Province, H E Mr Li Jiheng.

At the meeting, discussions were held with regard to areas where the countries could increase cooperation, with the governor pledging to work with the Maldives to strengthen cooperation in a number of fields including renewable energy, science and technology, tourism, connectivity, economy and trade.

He further discussed the strengthening of bilateral ties with Vice Premier of China H E Wang Yang.

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Vice President to seek investors during China visit

Vice President Dr Mohamed Jameel Ahmed left on an official trip to China yesterday evening (June 4).

During the visit, Jameel will attend the 2nd China-South Asia Expo and the 9th China-South Asia Business Forum, revealed the President’s Office. Jameel is also scheduled to meet Vice Premier of China, H.E Wang Yang. ‎

Prior to his departure, Jameel told press that he would meet with members of the Chinese business community in order to find potential investors for his government’s proposed development projects.

President Abdulla Yameen has promised a number of ‘mega-projects’ during his term, pledging legislation to create a more welcoming investor climate, and organising a landmark investment forum in Singapore in April in order to find potential foreign investors.

The projects showcased in Singapore included the Ihavandhippolhu Integrated Development Project, the expansion of Ibrahim Nasir International Airport, the relocation and expansion of the existing central port, and exploration for oil and gas.

During his state visit to Japan in April, Yameen also met with prominent businessmen, economists, and industrialists.

Jameel will discuss the government’s plans with the Chinese Government, which was said to be keen to hear about the plans.

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Maldives aims to boost Australian tourism with roadshow

The ‘Dive into Maldives’ roadshow kicked off yesterday (May 26) in Australia, with the objective of boosting Australian tourism in Maldives.

Organised by the Maldives Marketing and Public Relations Corporation (MMPRC), ten representative partners from the tourism industry of Maldives are participating in the roadshow together with the corporation.

According to an established resort manager, the Maldives is still a relatively unknown destination in Australia, due to little exposure from tourism operators.

“Many people [in Australia] still don’t know where it is. People are hearing about it, but there is limited public information,” the source told Minivan News.

“We have seen some growth,” the industry source continued, “they have a lot of their own islands, like Bali and Thailand that are cost effective, but now they’re looking for the next destination.”

According to the MMPRC, the roadshow offers a platform for the Maldives to establish direct contact with the Australian travel trade.

It is also an opportunity for the Australian travel trade to receive the latest updates regarding the Maldives, as well as the chance to directly meet the representatives of some of the Maldives’ most popular hotels, resorts, and travel agents who are participating in the roadshow.

An overwhelming response was received from the Australian travel trade for the Maldives roadshow participation, indicating their level of interest in the destination, according to a press release from the MMPRC.

Visits from Australian tourists made up 1.4 per cent of the visitors to the Maldives up to April of this year, and a total of 16,913 visitors from Australia visited Maldives last year – a growth of 38.1% compared to the previous year.

The roadshow will be held in three major cities – Sydney, Melbourne, and Perth – for three consecutive days, and will finish tomorrow (May 28).

Similar roadshows were held in China in 2012, following the explosion in Chinese tourist arrivals.

The main aims of the tour in China was to build confidence in the Maldives as a destination as well as to portray the country as an investment opportunity.

In 2011, China became the market leader in terms of visitors to the country, when the number of visitors from China surpassed those from Britain, reaching 198,000.

Since then, by individual market performances, China has remained the overall market leader to the Maldives, making up over 26% of shares by the end of April 2014.

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India offered to build naval dockyard in Maldives, says Indian media

India’s Army Chief General Bikram Singh has offered to build a dockyard worth MVR 7.7 billion (US$ 500 million) in the Maldives in his ongoing visit, Indian media has reported.

According to the Deccan Herald, China had already offered to develop the Uthuru Thilafalhu lagoon in the archipelago’s north.

Reclamation work is already underway in the area. Once completed, it will serve as the Maldivian Coastguard’s primary operations base and will provide a much-needed berthing space to naval ships and ocean liners.

India’s Foreign Secretary Sujatha Singh, during a visit to the Maldives in February, visited the Uthuru Thilafalhu project site. Minivan News understands discussions are underway on Indian investment in the project, but it is not clear if a decision has yet been made.

In recent months, India has been steadily increasing defense cooperation with the Maldives including the gifting of two ‘Dhruv’ Advanced Lightweight Helicopters (ALH) and development of the military hospital Senahiya.

Ties with India came under strain during President Dr Mohamed Waheed’s administration in the aftermath of Indian infrastructure giant GMR’s abrupt eviction. The company had won a concession agreement to develop the main airport.

Waheed went on to strengthen military ties with China, sparking Indian concern over “a Chinese policy to throw a ‘string of pearls’ – or a circle of influence – around India.”

Speaking during an official trip to India earlier this year, new President Abdulla Yameen stated that while the Maldives has “close ties” with China, “nothing will precede ties with India, which are far more precious”.

“While we have had a slight rough patch with India, the time of good relations far outweigh the rough patches we had. I suppose it is easy for us to be on the right track again,” Yameen said, referring to the airport dispute.

Singh’s visit is the first by a serving Indian Defense Chief since General Deepak Kapoor’s visit in February 2010.

An Indian High Commission press release on Tuesday said Singh’s three day visit – set to conclude today – will “further enhance bilateral defense cooperation.”

“India’s commitment to Maldives defense has been growing with each passing year. Both countries have inter-linked mutual security interests which need to be protected for the safety and security of the South Asian region and the Indian Ocean,” the statement said.

During his visit, Singh met with President Yameen, Defense Minister Mohamed Nazim and the Maldivian Chief of Defense Forces Ahmed Shiyam.

Singh also discussed the possibility of supplying fast-attack craft, amphibious landing craft and small arms from New Delhi, reported the Deccan Herald.

Another potential project is to train 40-60 officers of the Maldivian National Defence Force (MNDF) in Indian training establishments, the article continued.

“All such topics were discussed. But we will reveal details at a later time,” said MNDF Deputy Spokesperson Captain Ali Ihusaan, when asked for a comment on reports by Indian news sources.

Chinese investments including a US$54 million for an IT infrastructure project sparked Indian concern in 2013, with Indian Ministry of Communications and IT saying Beijing’s state owned companies must be “kept at bay.”

According to Indian media, the ministry – in an internal government note – suggested “substantial investment in the Maldives on similar projects [as being planned by China] ensuring that the traffic between India and the Maldives is handled through the equipment installed and commissioned in the Maldives by India.”

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Tourist arrivals increase six percent in March

Tourist arrivals in March increased six percent in annual terms but declined five percent in monthly terms, reaching 105,560 guests during the month, according to the Maldives Monetary Authority’s (MMA) monthly economic review released yesterday (April 30).

“The annual increase was due to the rise in the number of arrivals from China which offset the decline in arrivals from Europe,” explained the central bank’s monthly update of “developments in key economic sectors”.

Total bednights meanwhile rose two percent in annual terms, “while the average duration of stay declined marginally.”

The occupancy rate also decreased slightly compared to March 2013, falling to 82 percent. The report noted that the operational capacity of the tourism industry rose during the review month.

The Tourism Ministry meanwhile revealed yesterday that tourist arrivals in the first quarter of 2014 increased 9.7 percent compared to the same period of 2013, reaching a total of 321,561.

Europe retained the largest market share, accounting for of 51.3 percent of all arrivals to the Maldives with a total of 321,561 tourists during the first quarter of the 2014, the Tourism Ministry stated.

Asia and the Pacific recorded a growth rate of 24.4 percent at the end of first quarter of 2014, bringing in an additional 26,606 tourists to reach a total of 135,839.

The region accounted for 42.2 percent of arrivals to the Maldives at the end of first quarter of 2014.

According to the Tourism Ministry, the Chinese market expanded by 24 percent with an additional 16,960 tourists compared with the same period of 2013.

Statistics from the Tourism Ministry show that 331,719 Chinese tourists visited the Maldives last year, which was a 44.5 percent increase from the previous year.

Chinese tourists accounted for 29.5 percent of all tourist arrivals in 2013.

The Maldivian economy is largely dependent on tourism, which accounted for 28 percent of GDP on average in the past five years, and generated 38 percent of government revenue in 2012.

Inflation

Meanwhile, in the second largest industry, the volume of fish exports as well as earnings “fell significantly by 80 percent and 66 percent respectively” compared to March 2013.

The decline was accounted for by the fall in the volume of and earnings from “fresh, chilled or frozen tuna exports.”

“The International Monetary Fund (IMF) commodity price index fell marginally in monthly and annual terms during March 2014,” the central bank noted.

“The monthly decline was mainly due to the fall in both petroleum and metal prices which off set the increase in food prices during the review month.”

The price of crude oil in March 2014 was US$104 per barrel.

The inflation rate in the Maldives meanwhile decelerated to 2.3 percent in March from 3.4 percent the previous month.

“This was largely contributed by the slower growth in food prices, especially fish, and also due to the moderate growth in the prices charged for housing and utilities,” the report explained.

“Similarly, the rate of inflation declined marginally in monthly terms during March 2014, which was also due to the slower growth in fish prices.”

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