GMR – Page 10 – Minivan News

Home minister confident ahead of parliamentary no-confidence vote

Home Minister Dr Mohamed Jameel Ahmed has said he expects to successfully defend himself within the People’s Majlis against a no-confidence motion submitted this month by the opposition Maldivan Democratic Party (MDP).

Local media reported Friday (December 21) that Parliamentary Speaker Abdulla Shahid has sent the required 14-day notice to Dr Jameel informing him of a second no-confidence motion submitted by the MDP against him.

The motion was forwarded by the opposition party over allegations the home minister had failed to control civil peace and order in the country. A previous motion submitted by the MDP against Dr Jameel was withdrawn by the party for unexplained reasons.

Earlier this month, parliament also tabled a no-confidence motion filed against Defence Minister Colonel (Retired) Mohamed Nazim, despite a Supreme Court injunction ordering parliament to halt all pending no-confidence votes.

The People’s Majlis secretariat revealed at the time that Defence Minister Nazim has been given the required 14-day notice and his ministry also duly informed by Speaker Abdulla Shahid. A no-confidence motion against President Dr Mohamed Waheed Hassan is also in parliament awaiting scheduling.

Confirming that the 14 day notice ahead of the second no-confidence vote against him had now been received, Dr Jameel claimed he expected to successfully defend himself from the motion, as would other senior government representatives.

“[The no-confidence motion] is part of a democratic process that the government of the day must always be prepared to face. I feel it’s equally vital for those of us sitting in the government to inform the public and People’s Majlis of our performance and decisions.”

“I am sure once our side of the story is heard by the Majlis, the concerns and charges raised in the motion will become clearer and will be seen as baseless. It’s important in such a motion, in my opinion, to appear in the Majlis and fully cooperate with this democratic exercise,” he told Minivan News.

Dr Jameel added that the would not comment on whether he felt the MDP could garner enough support for the motion, referring the question to the opposition party.

MDP allegations

After last week submitting the bill, which was backed by 17 of MDP MPs, the opposition party accused the Home Minister of failing to control law and order in the country and therefore holding ultimate responsibility for the loss of eight lives.

The MDP further referred to an incident in which a police officer struck a speeding motorcyclist with his baton. The action caused the vehicle – alleged to have been driven by a suspected robber – to collide with another man’s motorcycle and killing him.

Police at the time did not reveal the involvement of the police officer in the death of the bystander. Video footage of the incident was subsequently leaked to the media. The MDP alleged that Home Minister Jameel had tried to cover up police involvement in the death.

MDP MP and Spokesperson Hamid Abdul Ghafoor claimed there was sufficient support in the Majlis to back the three no-confidence motions the party submitted against Dr Jameel, President Waheed and Defense Minister Nazim.

“We believe it is possible and necessary to [pursue the no confidence motions]. If you look at all cases, it is quite clear that all have acted unconstitutionally. This applies to all three cases,” he said.

In light of the government’s recent decision to terminate a sovereign agreement with India-based infrastructure group GMR over developing Ibrahim Nasir International Airport (INIA), Ghafoor contended that sufficient support remained in parliament to vote against the government in all three cases.

“We believe there are enough sensible MPs who understand the need for a legal ouster of an unelected executive,” he claimed.

Ghafoor added that the party was confident that a majority of MPs would not continue to allow what he alleged was the growing role of radicalism within the executive’s decision. He contended this influence had been seen in the government’s attitude against not only parliament, but foreign investment in the form of GMR.

“You have a government without any democratic mandate taking major decisions against parliament and foreign investors,” he added.

Earlier this week, government-aligned Progressive Party of Maldives (PPM) Parliamentary Group Leader and MP Abdulla Yameen alleged in local media that any damage to relations between India and the Maldives following the GMR contract termination had been the result of the actions of the National Movement.

The National Movement is made up of several representatives in the coalition government of President Waheed, notably including the religious conservative Adhaalath Party (AP).

During an interview with private broadcaster DhiTV on Tuesday (December 18), Yameen claimed that the airport was not withdrawn from GMR due to the pressure of National Movement, which had strongly opposed the deal, but rather a unanimous decision by the coalition government.

However, Yamin alleged that during rallies held by the National Movement, some participants spoke in a tone about GMR and the airport development that might have caused diplomatic issues with India.

According to Sun Online, Yameen was also quoted as claiming that the ongoing protests and rallies being held by the National Movement were unnecessary. He added that the Maldives might have to face difficulties due to the recent activities of the National Movement.

Days earlier, National Movement steering committee member and Minister of State for Finance Abbas Adil Riza said efforts would be taken to “break up” parliament should its dispute with the Supreme Court over holding temporary secret ballots for upcoming no-confidence votes continue.

However, speaking on December 9, government-aligned Dhivehi Rayyithunge Party (DRP) MP Abdulla Mausoom stated there was no ‘spirit’ within his party to support the no-confidence motion against Defence Minister Mohamed Nazim.

Mausoom said although the DRP would support no-confidence motions against cabinet ministers where it thought such actions were justified, he believed the party would not back the Maldivian Democratic Party (MDP) in trying to remove Nazim as defence chief as part of what he believed was a “personal vendetta”.

Mausoom contended that, for the vote against Defence Minister Nazim at least, the MDP would not be able to pass such “personal vendetta-based motions” and repeated his claim that the motion lacked sufficient grounds to be supported.

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State guarantee for GMR to obtain bank loans had no limits: Attorney General

Attorney General (AG) Azima Shukoor has claimed that a loan guarantee provided by the former government to infrastructure group GMR would have allowed the company to obtain finance without limitation.

According to local media, the attorney general has alleged that such a loan agreement would have contravened the country’s financial regulations unless approved by parliament at the time.

However, her claims have been dismissed by former Attorney General Ahmed Ali Sawad, who claimed that the agreement was conducted within state laws. Sawad helped oversee the agreement between GMR and former President Mohamed Nasheed’s government back in 2010.

GMR’s concession agreement was terminated by the Maldives government late last month after it decided – citing legal advice – that the sovereign contract was invalid from the outset.

Speaking to Parliament’s Public Accounts Committee yesterday (December 19), Shukoor revealed that the Maldivian state had agreed under the cancelled contract to act as a guarantor for all loans obtained by GMR under its agreement to develop Ibrahim Nasir International Airport (INIA).

According to the attorney general, this provision had been approved despite not being part of any senior finance agreement.

Shukoor added that under the primary agreement between the state-owned Maldives Airports Company Limited (MACL) and GMR, should MACL fail to make any repayments, the Maldivian state would have to cover any resulting costs.

“[The state] is not part of the senior agreement, thus to act as guarantor for loans obtained by another group – whether this was done with approval or not – would be to give a ‘blanket’ guarantee. I don’t think this can be permitted. I don’t believe that even the Public Accounts Committee would do that,” local media reported Shukoor as saying.

The agreement, which states that the Maldivian government is responsible for all loans obtained by GMR, was made with the approval of former Attorney General Sawad, Shukoor said.

According to Shukoor, Sawad had permitted the agreement in writing, concluding at the time that the deal would not result in any legal problems.

She also claimed that approving the agreement without parliament’s approval was in violation of the Finance Act.

“Financial guarantees given by the state should have limits. We are signing an agreement allowing future groups to obtain as much money as they want under our guarantee – I don’t believe that this is a valid legal concept,” Shukoor was reported to have said.

Responding to Shukoor’s comments, Sawad today told Minivan News that he “did not believe” there had been a violation of any law whilst he held the position of attorney general.

“I deny her claims, although I’m not actually sure what her claim is. I don’t think she knows what her claim is,” he said.

“She [Shukoor] needs to figure out if it was a guarantee or not a guarantee, because in the meeting she said that it ‘was a guarantee’ and then said that it was like a guarantee’. Regardless of whether or not it was a guarantee, the whole thing is irrelevant as she has stated the GMR contract is void ab initio (invalid from the outset),” Sawad claimed.

GMR’s tender agreement to develop INIA was overseen at the time by legal and financial experts including the International Finance Corporation (IFC) – a World Bank entity. The deal also obtained the certified approval of former Attorney General Sawad.

Attorney General Shukoor was not responding to calls from Minivan News at time of press.

Speaking to the committee yesterday, local media reported Shukoor as stating that Singapore’s Axis bank had permitted GMR to obtain loans worth $386 million, of which GMR had taken $165 million. Shukoor highlighted that should GMR fail to repay this loan, then the government would have been required to meet any resulting costs.

She stated that if the government found itself unable to pay back these loans, the image of the state will be damaged, leading to potential implications for securing future finance.

“When we think about taking legal action in relation to this matter, we see that the head state prosecutor has advised that signing that agreement should not cause any legal problems. So it becomes something the state has to honour,” she added.

Despite the former Attorney General approving the agreement, Shukoor stated that government has a strong legal argument over the loan issue, whereby under the Public Finance Act, the government cannot act as a guarantor without the parliament’s approval, which was allegedly not obtained.

“The State is acting as the guarantor to the loans taken based on the transactions between GMR and Axis Bank. I believe that is not something permitted under the Finance Act. It is like a blanket sovereign guarantee. We may not be able to classify it as a sovereign guarantee. But we are seeing an assurance given by the State,” Shukoor was quoted as saying by local newspaper Haveeru.

GMR bid qualification

Meanwhile, Chief Financial Officer (CFO) of GMR Airports Sidharath Kapur today rejected comments made by President’s Office Spokesperson Masood Imad in Indian media alleging that the company did not originally qualify as a bidder to develop INIA in a technical evaluation process.

Masood was quoted in the Business Today publication as claiming that the technical evaluation committee during the bidding process acted under pressure from former President Mohamed Nasheed, who then qualified the GMR Group for the project.

In response, Kapur said that the company had won the project in an “open and transparent” bidding process, stating that GMR had qualified in the technical, financial and legal evaluations.

Kapur noted that the bidding process was supervised by the International Finance Corporation (IFC), and that the IFC had successfully handled such public-private partnerships in the airport sector in many countries.

“While other bidders opted for the ‘earn and pay’ route, the GMR consortium adopted a ‘pay and earn’ strategy, and hence paid $78 million up front to the Government of Maldives,” he added.

Kapur also attacked the present government’s handling of the GMR issue, alleging that the resulting arbitration case to decide on compensation owed to the company from the contract cancellation could have serious financial ramifications for the nation.

“Compensation believed owed to GMR due to the illegitimate cancellation of the contract by the government of Maldives may put a significant and avoidable financial burden on the people of Maldives,” he stressed to Business Today.

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Government considering seeking compensation from GMR: Attorney General Azima Shukoor

Attorney General (AG) Azima Shukoor has said the Maldives government could opt to seek compensation from infrastructure group GMR after it decided to void the India-based company’s concession agreement to develop Ibrahim Nasir International Airport (INIA), according to local media.

GMR last week confirmed that it was seeking an estimated US$800 million in compensation in order to recover what it has claimed are investment and earnings after the government “wrongfully” terminated its contract.

In a press conference held yesterday (December 17), the attorney general maintained the government’s belief that the agreement with GMR to develop INIA was illegal. She added that the government therefore intended to seek compensation for damages it “might” have incurred during the process of entering into the contract with GMR, local newspaper Haveeru reported. The contract was signed during the administration of former President Mohamed Nasheed.

Highlighting the pending arbitration process in Singapore Court between the government and GMR, Shukoor said that efforts were being made to appoint arbitrators for the hearings. She added that the government and Maldives Airports Company Limited (MACL) had appointed a “member” of Singapore National University as their arbitrator.

Similarly, GMR will also be given a 30-day period to appoint an arbitrator on its behalf.

Shukoor suggested during the yesterday’s press conference that it may take a period of one year until the due procedures were completed before a decision was made in the courts.

“It will take about two months time to appoint the panel to overhear the arbitration case. After that, parties will exchange documents and affidavits and respond to it and only after that a proper hearing on the matter will be held and might take up a period of one year,” she suggested.

Indian media reported last week that GMR had sent a letter to the Finance Ministry stating that it would seek compensation worth US$800 million. Shukoor denied such a communication had been sent, adding that she did not believe such a demand could even be made.

“We terminated the agreement on the grounds of void ab initio (void from the outset) , therefore we will begin the negotiation on the position that the government of Maldives do not require to pay back anything,” Shukoor explained.

However, she admitted that owing to the size of GMR’s investment, there remained a possibility that government might have to pay some amount that would be determined through the arbitration process.

“Even if we do require paying back as compensation, it would be based on the decisions reached during the arbitration process. If it is settled out of court, then it would be based on legal arguments raised by the parties to the contract,” she added.

Shukoor has also claimed that even before INIA was handed over to GMR, no asset valuation was carried out – a decision expected to cause problems for the government. She also said that it has not been yet decided how the asset valuation would be carried out or how the amount that the government might seek in compensation from GMR would be calculated.

Even with the arbitration process now proceeding, Shukoor told local media that if the government believed additional compensation was required, it would seek the additional amount through the same courts.

“A lot of work is being carried at the moment. However, we have not yet calculated the amount we might have to pay or the amount that had been invested and even the amount we expect to seek,” she explained.

GMR demands US$800 million in compensation

GMR is seeking US$800 million in compensation following the termination of its US$511 million concession agreement signed under the former government back in 2010.

The Indian infrastructure giant has said that the proposed US$800 million claim was based on its “provisional estimates” and that the company had also taken into account the Maldives’ ability to cover such payments if compensation was awarded by the Singaporean courts overseeing arbitration.

GMR’s chief Financial Officer (CFO) Sidharath Kapur previously told Minivan News that the sum was a “preliminary estimate” based on a number of factors including investments made by the company, debt equity and loss of profits as a result of the contract termination.

He also added that on last Tuesday (December 11) the company had communicated with Maldives Ministry of Finance by sending an official letter outlining its concerns that the contract had been “wrongfully” terminated without respect for the agreed procedures.

Meanwhile according to Finance Minister Abdulla Jihad, no mechanism is currently budgeted should the Maldives face a multi-million US dollar bill for evicting GMR, but stressed it was not for the company to decide on any eventual payment.

He also played down fears that any potential fine could prove perilous for the country’s economy, as well as attempts to reduce the spiralling budget deficit, stating that any possible fines would be set by the Singaporean arbitration court hearing the dispute.

“We will deal with the matter when we know the amount of compensation to be paid,” he said at the time. “GMR cannot decide, it will be down to the court [hearing the arbitration].”

The INIA concession agreement

In 2010, the government of Maldives through its Finance Ministry, MACL and GMR-MAHB entered into a concession agreement with INIA whereby the Malaysian-Indian consortium were to develop and operate the airport for a period of 25 years.

According to the concession agreement a “project company” under the name GMR International Airport Limited (GMIAL) was to carry out the development project.

However, a lengthy dispute between the new government of President Dr Mohamed Waheed Hassan and the GMR Group led to the eviction of the agreement.

On November 27, President Mohamed Waheed’s cabinet declared the agreement void, and gave the company a seven day ultimatum to leave the country.

Shukoor at the time stated the government reached the decision after considering “technical, financial and economic” issues surrounding the agreement.

She also claimed the government had obtained legal advice from “lawyers in both the UK and Singapore as well as prominent local lawyers – all who are in favour of the government’s legal grounds to terminate the contract.”

The INIA was handed over to the government on December 8, in an invitation-only press conference; Finance Minister 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”.

With arbitration proceedings 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”, he said at the time.

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.

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“There was a legitimate contract signed. We are disappointed”: Malaysian Trade Minister

The Malaysian government has expressed “disappointment” at the scrapping of the Maldives’ “legitimate” contract with the GMR-Malaysia Airports Holdings Berhad consortium.

Indian media reported that Malaysian Prime Minister Najib Tun Razak was scheduled to visit New Delhi towards the end of the week and would likely be discussing the matter with Indian Prime Minister Manmohan Singh.

Malaysia’s Consul General in Chennai, Citra Devi Ramiyah, told reporters in Delhi that it was too early to speculate whether MAHB would seek compensation from the Maldivian government, which voided the GMR-MAHB concession agreement and ordered the company to leave by December 7.

The government had earlier dismissed a stay order for the eviction granted by the arbitrators – the Singapore High Court – as an affront to the country’s sovereignty. A day before the end of the seven day notice period, the injunction was dropped on appeal after Chief Justice Sundaresh Menon of the Supreme Court of Singapore declared that “the Maldives government has the power to do what it wants, including expropriating the airport.”

Ramiyah told reporters that the Maldivian government had shown its intention “to do the project on its own and [was] willing to compensate financially. So, it is very early for us to comment.”

Malaysian Minister of International Trade and Industry Seri Mustapa Mohamad was more concerned, according to the Economic Times, and expressed hope that the Maldives would reconsider its decision to evict the investors.

“In Male we have enjoyed very close ties with the previous government for many years. The Maldives is 100 per cent Muslim country. Of course, with the new government the lesson for us is we should be more careful, more due diligent,” Mohamad said.

“We want our investments to be protected. There was a legitimate contract signed. We are disappointed,” he added.

GMR meanwhile handed over the duty free stores today after being ordered to do so by the government.

“GMR has vacated the duty free shops at the airport. So since they’ve cleared their goods, no services will be provided from the shops,” Maldives Airports Company Limited (MACL) Rahmathullah Ashraf told local media.

Andrew Harrison, CEO of GMR Male International Airport – GMR’s side of the voided airport development – dismissed claims in local media that the company had “stripped” the duty free store ahead of the handover.

“We were asked to close duty free by the 17th. It is not true we have stripped duty free. We have destocked and in some cases returned goods to suppliers, or found buyers through appropriate customs procedures,” Harrison said.

GMR had sought a smooth transition after being ordered to handover the airport “as we did not want passengers or carriers to suffer,” he said. “The only area left where we [were] active was duty free.”

GMR staff had begun returning to India, particularly those involved in the construction of the new terminal after the cancellation of the contracts to build it, he said.

The government has not yet declared what it intends to do with the foundations of the abandoned terminal project, built on 60 hectares of reclaimed land on the other side of the airport island.

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Defence Minister signs military aid agreement with China

Defence Minister Colonel (Retired) Mohamed Nazim signed a military aid agreement with Chinese National Defence Minister General Liang Guanglie during his official five-day visit that concluded yesterday (December 15).

Following official talks between the defence ministers, Chinese state-run Xinhua news agency reported Nazim as assuring Guanglie that the Maldives was “willing to cement relations between the two countries and their militaries.”

General Liang reportedly said China would “continue to develop friendly, cooperative and mutually beneficial relations with the Maldives under the principle of building a good-neighbourly relationship and non-interference in internal affairs”.

“China has always positively developed its military relations with the Maldives and hopes to enhance communication and cooperation, promote the construction of both militaries, and safeguard regional peace and stability,” he was quoted as saying by Xinhua.

According to a press release by the Ministry of Defence and National Security, Defence Minister Nazim held talks with his Chinese counterpart on December 11, which focused on Chinese military assistance to develop the Maldivian military.

The agreement to develop military ties and provide free Chinese aid to the Maldives National Defence Force (MNDF) was signed at the meeting, the press release stated.

Defence Minister Nazim also met the Vice Chairman of the Chinese Central Military Commission, Xu Qiliang, and discussed strengthening Sino-Maldives military ties.

During his visit, Nazim visited the Chinese National Defence University to discuss securing education opportunities and toured the People’s Liberation Army (PLA) Naval Submarine Academy as well as the PLA Navy’s North Fleet.

The Defence Minister met MNDF coastguard personnel training at the submarine academy, the press release noted.

Nazim’s official visit to China followed the government’s abrupt termination of a 25-year concession agreement with Indian infrastructure giant GMR to modernise and manage the Ibrahim Nasir International Airport (INIA).

The move fuelled speculation in the Indian media of a Chinese role in the government’s decision to void the agreement and evict the GMR-led consortium.

President Dr Mohamed Waheed Hassan Manik has however dismissed suggestions that China urged the Maldives to push out the Indian company.

“The only significant cooperation we have with China at this time is through development assistance… like building the museum, housing projects. I don’t think India should worry about it at all,” Waheed was quoted as saying by The Hindu.

Meanwhile, India’s The Economic Times reported yesterday that China’s strengthening of ties with the Maldives may be part of its larger plans of dominating strategically-important sea lanes in the Indian Ocean, “according to an assessment of the Indian intelligence agencies.”

“Beijing is reportedly wooing Male’ to pre-empt a US move to set up a new military base in the Maldives’ southernmost island of Gan,” The Economic Times reported.

The paper also took note of recent statements by former President Maumoon Abdul Gayoom suggesting that it was “natural for a country with such huge resources to come and help us.”

“China has been with us for 40 years,” Gayoom told Indian media last week.

In November 2011, China became the first non-SAARC nation to open an embassy in the Maldives.

AFP at the time reported Indian officials as expressing concern that it was “part of a Chinese policy to throw a ‘string of pearls’ – or a circle of influence – around India.”

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Cabinet proposes government form own company to oversee Male’ airport development

The Maldives cabinet has recommended forming a government-owned company to run Ibrahim Nasir International Airport (INIA) following the state’s decision earlier this month to nationalise the site, voiding the largest ever foreign investment project in the country’s history.

President Dr Mohamed Waheed Hassan was yesterday advised to form Male’ International Airport Ltd to operate INIA after its termination of a concession agreement with India-based GMR to manage and develop the site for 25 years.

According to the President’s Office website, cabinet recommended that Male’ International Airport Ltd be formed with 100 percent government shares, while claiming full authority to operate and develop INIA through a special contract with the Maldives Airports Company Ltd (MACL).

The MACL took over management of the airport from GMR on Saturday (December 8).

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GMR welcomes “smooth” handover of airport

GMR has claimed that a transition agreed by GMR Male International Airport Limited (GMIAL) and the state-owned Maldives Airports Company Limited (MACL) has helped ensure a “smooth” management switch-over following a decision to nationalise Ibrahim Nasir International Airport (INIA).

In a statement released yesterday, GMR said that it had worked to try and ensure no passenger or airline services were disrupted by the change of management to MACL. The state-owned company has resumed management of INIA after the present government opted to void the Indian infrastructure giant’s concession agreement – the largest single foreign investment project in the Maldives’ history.

“Even though the legal position and stand of GMIAL remains unchanged, it was purely in recognition of the Court of Appeals, Singapore’s decision that a smooth take-over was facilitated. GMR and Malaysia Airports came to the Republic of Maldives to participate in the development of a modern and progressive Maldives and would not like to leave with the task being half done,” the India-based infrastructure group stated.

“So whilst the legal process for determination of compensation, etc is on and will take its own course; we remain committed and open to a dialogue with the Government of Maldives and in service to the people of Maldives.”

On Sunday (December 9), MACL told Minivan News that there had been no disruption to services at INIA after it resumed management of the site from GMR – a claim backed by several resort operators and airlines at the time.

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Defence Minister departs on official visit to China

Minister of Defence and National Security Colonel (Retired) Mohamed Nazim departed to China today on an official five-day visit at the invitation of the Chinese Minister of National Defence.

In a press release today, the Defence Ministry revealed that Nazim is due to hold official talks with the Chinese Minister of National Defence General Liang Guanglie and meet members of the Chinese central military commission.

“During his visit, the Defence Minister will hold meetings with China’s National Defence University, Military Medical University and Shanghai Institute for International Studies as part of his efforts to seek further opportunities for education in China,” the press release stated.

The official visit would further enhance Sino-Maldives “defence and military ties” and secure Chinese assistance for developing the Maldivian military, the Defence Ministry said.

The Defence Minister’s official visit to China follows last week’s termination by the government of a 25-year concession agreement with Indian infrastructure giant GMR to modernise and manage the Ibrahim Nasir International Airport (INIA).

The move fuelled speculation in the Indian media of a Chinese role in the government’s decision to void the agreement and evict the GMR-led consortium.

“Looking at the political situation and political framework in Maldives, I can’t rule out anything,” GMR Airports chief financial officer ( CFO) Sidharth Kapur told journalists in New Delhi last week.

In November 2011, China became the first non-SAARC nation to open an embassy in the Maldives. AFP at the time reported Indian officials as expressing concern that it was “part of a Chinese policy to throw a ‘string of pearls’ – or a circle of influence – around India.”

Meanwhile, the Hindu reported today that President Dr Mohamed Waheed Hassan Manik has dismissed suggestions that China urged the Maldives to push out the Indian company.

The President further claimed that the Maldives was presently “not looking for a foreign investor” to develop the international airport, with the government yesterday announcing it was undecided on whether any new privatisation agreement would be sought in future.

However, officials from India’s External Affairs Ministry told the Indian Express on condition of anonymity that “China was keen to get a foothold in the Male’ airport asset as a base in the Maldives would put the dragon state in control of the oil routes in the region and give it greater dominance over sea lanes.”

India’s Economic Times meanwhile characterised the cancellation of the contract as a “strategic loss” for India.

Following an official visit in August, President Dr Mohamed Waheed Hassan Manik told Reuters that China pledged to grant the Maldives US$500 million (MVR 7.7 billion) in loans, equal to nearly one quarter of the Maldives’ GDP.

President’s Office Spokesperson Masood Imad told The Hindu a day before the airport handover that 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 Dr Shakeela, in an appeal for assistance with climate adaptation.

Minivan News has learned that senior Chinese military officials landed at the airport in the tense week leading up to the handover.

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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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