Tag: GMR

Former President Nasheed denounces DQP’s economic criticism of GMR contract

Former President Mohamed Nasheed on Sunday slammed a pamphlet released by the Dhivehi Qaumee Party (DQP) which claims to detail the financial loss caused to the country through leasing the international airport to Indian infrastructure giant company, GMR.

“I assure you that no loss at all would be caused to the Maldivian people through having a foreign company manage the airport,” Nasheed assured the crowds of over 1500 supporters gathered at Maldivian Democratic Party (MDP)’s rally grounds Usfasgandu on Sunday night.

During his speech, Nasheed broke down the figures published in the book titled “Loss and Challenges of the long-term leasing of Male’ International Airport to GMR” written by current Special Advisor to the President, Dr Hassan Saeed. He further emphasised the inconsistencies that those figures held in comparison with the values he put forth with reference to external sources and the GMR contract.

“I am inclined to think that these people who have written this book must have studied their mathematics in an opium field in Afghanistan’s Kandahar. There is no other way that they could have gotten their arithmetic so completely wrong,” Nasheed said.

Nasheed said that while the book cites the MDP government’s estimation of a profit of MVR 45 billion in the next 25 years if GMR managed the airport, it went on to state that if the government took over management, they stood to receive a profit of MVR 60 billion (US$3.9 billion).

Elaborating on what the book had provided as backing for the said claim, Nasheed said “The first estimate they’ve made is that airport growth will increase by 25 percent every year. However, the IFC, World Bank, and other relevant international entities tell us that the rate of growth will be between 3.5 and 4.5 percent.”

“What is being said here is that the number of people coming to our airport far exceeds the number of tourist beds in the country. Even taking this to account, I see that they have sneaked in MVR 12 billion (US$778 million) to reach this 60 billion,” Nasheed said.

Nasheed added that the book had failed to consider the expenses that the Duty Free shops would pose, instead noting only estimated earnings.

“Usually expenses add up to 75 percent of earnings. Therefore, MVR 19.5 billion (US$1.26 billion) has been sneaked in to reach that 60 billion figure,” Nasheed stated.

“They also say that GMR is to invest MVR 4.8 billion (US$311 million) [over the lifespan of the contract] but I can without a doubt tell you that in accordance with the contract, GMR is to invest MVR 8.9 billion (US$577 million),” he further said.

Nasheed also pointed out that while the book claimed the government would finance the airport through a direct loan, they had omitted payment of any interest on the loan.

“In their accounting, they have not put down any expenses for the Maldives Airports Company Limited (MACL). These expenses are at least a MVR 110 million (US$7.14 million) per year, so again MVR 2.7 billion (US$175 million) needs to be taken out from this said MVR 60 billion.”

“In conclusion, the actual figures show that if MACL manages the airport, the government will receive MVR 18 billion (US$1.16 billion) over the next 25 years. Whereas if GMR manages it, the government will receive MVR 45 billion (US$2.92 billion) – that is MVR 1.6 billion (US$103.7 million) per year,” stated Nasheed.

Nasheed further claimed that under the contract, the Passenger Service Tax (US$18 US from foreigners and US$12 from locals) which used to be paid to MACL was now paid directly to the government.

“Thus in addition to the figures I’ve just shared, an additional MVR 324 million (US$21 million) will go into the government budget,” Nasheed claimed.

“No truth in government’s claims to nationalise airport”: Nasheed

Nasheed said that statements regarding “reclaiming” the airport from GMR were “highly irresponsible”, stating that such words from a government could cause irreparable damage to the country.

“Most of us citizens will doubtless understand that putting up banners with slogans all over the streets of Male’ and raising voices against India holds no benefits at all for the country,” Nasheed said, criticising the current ‘Airport Week’ being marked by the unity government parties.

Nasheed further alleged that airport nationalisation was a topic currently being used by political actors for their own personal interests .

“They are talking about the airport, and the religion of Islam, nationalism, national heritage and patriotism for the sole purpose of pulling the wool over people’s eyes and to orchestrate the coup,” Nasheed continued. “Even today they are not really trying to take the airport back from the GMR. This talk about the Adhaalath Party and Waheed’s government nationalising the airport has no amount of truth in it,” he said.

“I remember one mutinying officer on February 7 saying that he was there because the MDP government had sold the airport his father and grandfather had built. I want to say that the airport is still there. The only difference is that it roof is no longer leaking,” Nasheed said.

Nasheed ended his speech sharing his wish that the airport was developed by a capable company and that it would in future become the best of its kind across Asia.

Minivan News tried contacting Hassan Saeed, but he was not responding to calls at time of press.

DQP Secretary General Abdulla Ameen, President of the Adhaalath Party (AP) Sheikh Imran Abdulla, and Minister of Islamic Affairs and AP Member Sheikh Mohamed Shaheem Ali Saeed were also not responding to calls.

The Adhaalath Party has previously called on President Mohamed Waheed Hassan and other coalition parties to not conduct any communication with GMR which might disrupt the government’s push for airport nationalisation, a push it praised as “national jihad”.

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“Waves of secularism”: President warns of undue foreign influence

Foreign parties are attempting to exert undue influence over the Maldives, secularise the country and exercise power over its people, President Dr Mohamed Waheed Hassan Manik has warned.

Dr Waheed made the remarks in his address to the nation (Dhivehi) at a ceremony on Friday night, following the unveiling of a memorial monument for ‘Victory Day’  – when an attempted coup on November 3, 1988 was thwarted by Indian military intervention.

The former vice president said that “foreign parties are attempting to exert influence over us in different ways, under different names and capacities, to exercise power over us.”

These foreign parties were “saying that we must turn to their ideologies and sending waves of secularism [or secular ideologies]  to the country,” the President claimed.

The country has undergone drastic changes in a changing world, Dr Waheed said, while Maldivians’ “traditions, lifestyle and behaviour” has seen major changes.

Dr Waheed contended that Islam was the principal reason “behind the Maldives surviving to the present day.”

“We would not be here marking this day if not for the light of that religion,” he said. “Therefore, we should not give any opportunity for [anyone] to take undue advantage of the turmoil in our environment. I call upon all political parties not to compromise the peace and security of our nation.”

In his first major speech since assuming the presidency on February 7, Dr Waheed told supporters of the ruling coalition that this was “no longer the age of colonialism” and that “no foreign country can influence the Maldives.”

“Today we will maintain our sovereignty with bravery. Be courageous. We will not back down an inch. Today, the change [in power] in the Maldives is what Allah has willed. This did not happen because of one or two people coming out into the streets. Nobody had been waiting for this. Nobody even saw this day. This change came because Allah willed to protect Islam and the decent Maldivian norms,” Dr Waheed had said on February 24.

“Be courageous. Today you are all mujaheddin [those who wage jihad or holy war] who love the nation. We will overcome all dangers faced by the nation with steadfastness.”

Indian investment

Meanwhile, speaking at a ceremony to mark 46 years of diplomatic relations between the Maldives and India on Thursday night, President Dr Waheed said business that have done well in the country were “built on mutual trust and respect.”

While the Maldives would “always welcome Indian investments” it was important to ensure that “national interests are fully protected” when inviting multi-national corporations (MNCs) to invest in the country, President Waheed said in a speech delivered in English.

“Small countries like Maldives are like small businesses, vulnerable to external shocks, always self-conscious about security and easily manipulated by bigger partners. In addition as a nation state small countries are very conscious of their national pride and sovereignty. It is important that, we small countries invite large Multi-national Corporation’s we need to assure that our national interests are fully protected,” Dr Waheed said.

“Similarly the MNC’s must understand as small countries we are vulnerable, we have little bargaining power and especially as a country in transition, we are on a steep learning curve, it is when we become sensitive to each other’s concerns that we build a trusting and lasting friendship. It is not a secret that we are currently facing some difficulty with some Indian companies, we must overcome these difficulties and adamantly resist such difficulties from effecting our very close and brotherly relationship between our two countries.”

He added that Maldivians should “never question the relationship with India” and “must always appreciate and remain grateful to India.”

Meanwhile, Minister of Finance Abdulla Jihad last week warned that the government was unprepared to meet its recurrent expenditure – including salaries – for the final months of 2012 without US$25 million promised by the Indian government.

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Indian investors concerned about government’s political interference: Business Standard

Indian companies operating in the Maldives are expressing concerns over political interference they claim is derailing their substantial investments in the country, reports India’s Business Standard publication.

Officials involved in the Apex Realty housing development project – a joint venture between developers SG18 and Indian super-conglomerate TATA – told the Standard that the government was attempting to take over the site in Male’ given to the company, with the intention of building a new Supreme Court.

After being elected in 2008, former President Mohamed Nasheed moved the Supreme Court into the opulent palace of his predecessor, Maumoon Abdul Gayoom, opting for the less lavish building of Muleaage as the Presidential residence.

“A recent meeting held with the Maldivian Housing Minister is said to have ended abruptly with officials from the firm and the Indian High Commission being asked to leave,” the Standard reported.

President Mohamed Waheed’s Media Secretary, Masood Imad, confirmed to the publication that the meeting had taken place, and said the minister had given them time, even though it was “unannounced”.

“I am told that the meeting continued for about an hour. TATA Housing officials were raising issues that were not in the contract but the Minister accommodated most of the issues. Most of the issues discussed were procedural,” Masood was reported as saying.

A source involved in the deal confirmed to Minivan News that the government had offered land in Hulhumale’ to the developers as an alternative to the agreed site in Male’. However, the same source said the developers felt the change would affect the financing of the project.

Minivan News was awaiting a response from the Indian High Commission at time of press.

GMR grievance

Indian infrastructure giant GMR has also raised concerns about the new government’s handling of its concession agreement to manage and develop Ibrahim Nasir International Airport (INIA), signed with the former administration.

The company has previously sought to downplay its issues with the government in the media, however “public statements and press conferences of some government ministers and coalition party leaders are clearly aimed at arousing public sentiments against GMR and creating undue challenges for us,” the company told the Standard.

“To gain political advantage, some elements of the government itself have started hampering the smooth functioning and development of the airport,” the company added.

Moreover, the government was passing new laws and policies that were harming its interests.

“GMR was granted required approvals and licenses to operate Arrival Duty Free on December 30, 2011. We made huge investments in development of arrival duty free area. However, the government later revoked the licence citing that earlier the licence was given in error,” the company told the Standard.

“Similarly, On April 23, 2012, the GoM (Government of Maldives) passed an amendment to Business Registration Bill to restrict any foreigner to carry on Duty Free business, cargo clearance business, and bonded warehouse business at the airport. This step is clearly directed against GMR.”

The comments follow a US$2.2 million bill handed to the government’s side of the airport contract – the Maldives Airports Company Limited (MACL) – following a third quarter in which the airport developer deducted its contractually-mandated airport development charge (ADC) from concession fees due the state.

In the first quarter of 2012 the government received US$525,355 of an expected US$8.7 million, after the deduction of the ADC. That was followed by a US$1.5 million bill for the second quarter, after the ADC payable eclipsed the revenue due the government.

Combined with the third quarter payment due, the government now owes the airport developer US$3.7 million.

The US$25 ADC, stipulated in the developer’s concession agreement signed with the Nasheed government, was to be levied on all outgoing passengers at INIA.

However, the former opposition Dhivehi Qaumee Party (DQP) – now part of the coalition government – in late 2011 filed a successful case in the Civil Court challenging the legality of the charge on the grounds that it was a tax not approved by parliament.

Nasheed’s government instructed MACL to deduct the ADC from the concession fees due the government while it sought to appeal. However soon afterwards Nasheed resigned in controversial circumstances, handing power to his Vice President, who swiftly replaced much of the government with appointments from the former opposition.

Speaking to the Standard, Masood said that the government “will not target any investment, Indian or otherwise unduly. The assurances given by the President securing foreign investments in Maldives are valid and stand true.”

However Attorney General Azima Shukoor told media this morning that “After the necessary research, we have said that the GMR agreement causes financial loss to the state.”

She expressed confidence that the government would win the case in the Singapore court of arbitration, the next hearing of which is to be held on November 19.

“I would like to point out that the Anti-Corruption Commission (ACC) still hasn’t finished the complete investigation into the GMR matter. This also presents difficulties for us, she said.

“I have met with the heads of ACC and Auditor General two, three times. I can’t say anything about the investigations. But I haven’t heard back anything after I shared the information I had available with them.”

Other elements of the government have also persistently called for the airport’s nationalisation.

DQP Leader Dr Hassan Saeed, now Waheed’s Special Advisor, at the launch of a book (in Dhivehi) last month criticising the airport development, said that the “only way to reclaim the airport from GMR” was to invalidate or cancel the concession agreement.

Home Minister Dr Mohamed Jameel – also a DQP member – said at the launch that it was the “duty of the most capable people in the country” to step forward and help “liberate” the nation from “grave problems” during the current “difficult times”.

The religious Adhaalath Party, likewise aligned with the current government – in September called for a “national jihad” to nationalise the airport development.

Another government-aligned party, the Jumhoree Party (JP) headed by resort tycoon, media owner and member of the Judicial Services Commission (JSC) Gasim Ibrahim, has also called for the nationalisaiton of the airport.

In September Gasim urged the government in to reclaim the airport, even at a cost of US$700 million, as it was worth “a thousand times more”.

Gasim’s comments followed GMR’s decision to suspend the credit facility for his Villa Air airline, due to unpaid bills totaling MVR 17 million (US$1.1 million) for fuel, ground handling and passenger service fees.

In late September GMR sponsored the inaugural Maldives Travel Awards, held on Gasim’s Paradise Island resort.

Paradise won the title of ‘Leading Business Hotel’, while Gasim’s Villa group of companies also picked up an award for ‘Leading Domestic Airport’. Gasim himself received a ‘Lifetime Achievement’ award.

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“The word coalition is not meaningful in the Maldives”: DRP Deputy Leader

Deputy Leader of the Dhivehi Rayyithunge Party (DRP), Dr Abdulla Mausoom, has dismissed reports in local media that the party’s alliance with the Dhivehi Qaumee Party (DQP) is being reconsidered.

“I think the media report is the opinion of one person,” said Mausoom.

Mausoom was responding to quotes from the Secretary General of the DQP, Abdulla Ameen, suggesting that a failure to strengthen the party’s ties since its initial agreement in February 2011 had made the coalition redundant.

“The coalition was formed to make the then government more accountable to its people. The other reason was to create an environment for the opposition parties to work together,” Ameen told Haveeru.

“But former President Mohamed Nasheed’s government fell in a way that we had not even expected. Now we have to function in a different manner altogether. So the circumstance under which the coalition was formed has changed drastically,” he added.

Ameen went on to say that the issue was one which would have to be discussed by the parties’ respective councils – he was not responding to calls at the time of press.

Mausoom, however, was keen to point out that the nature of the agreement with the DQP was more akin to an election strategy than a traditional coalition.

“The word coalition is not very meaningful in the Maldives,” he said. “Nasheed used a coalition to get into power and that fell apart.”

“We has an understanding – rather than a coalition per se – that Qaumee party would support DRP’s presidential candidate in 2013,” he explained.

Mausoom went on to suggest that legislation would be needed to enforce coalition arrangements before they could become a serious feature of Maldivian politics.

This view reiterates a point previously expressed by the DRP, who view the current alliance of political parties in support of President Dr Mohamed Waheed Hassan as a national-unity government rather than a coalition.

A no-confidence motion, seemingly backed by politicians from within the pro-government group, against President Waheed is currently awaiting inclusion on the Majlis agenda.

Ameen went on to argue that the two parties differ significantly on major issues, in particular the development of Ibrahim Nasir International Airport (INIA) by the Indian company GMR.

Both parties appear to oppose the deal, though DRP leaders have been more vocal about the need to take the issue through the courts and to protect investor confidence in the country.

The DQP, however, released inflammatory literature likening the airport’s development to colonisation. The party’s leader, Dr Hassan Saeed, has this week released a book arguing for the unilateral invalidation of the agreement.

Hassan, also Special Advisor to President Waheed, compared cancelling the deal to “taking bitter medicine to cure a disease” or “amputating an organ to stop the spread of cancer.”

The DRP has stated its intention to provide voters with an alternative to the divisive and personality based politics offered by the other parties.

Vilufushi MP Riyaz Rasheed – the DQP’s sole MP -in June threatened to walk away from the party should it continue to its ties with the DRP, after the abstention of a DRP MP allowed the Maldivian Democratic Party (MDP) to pass a motion to debate police brutality in the Majlis.

The firebrand MP was reported by one local media outlet to have resigned from the party last week before telling another that the supposed resignation letter was simply one outlining current issues of concern he had about the party.

The DRP currently holds 13 seats in the Majlis and has 26,798 registered members, making it the second largest party in the country. The DQP has one seat and 2,199 members.

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Annulling GMR agreement “only option for reclaiming airport”: Dr Hassan Saeed

The only option for “reclaiming the airport from GMR” is to invalidate or cancel the concession agreement with the Indian infrastructure giant, argues Dhivehi Qaumee Party (DQP) Leader and Special Advisor to the President, Dr Hassan Saeed, in a new book (Dhivehi) released on Monday.

The book, titled: “Loss and challenges of the long-term leasing of Male’ international airport to GMR” was launched at a ceremony on Monday at the government-aligned private broadcaster DhiTV by Home Minister Dr Mohamed Jameel Ahmed, deputy leader of the DQP.

The booklet covers various issues surrounding the concession agreement awarding management and development of the international airport to a consortium of GMR Infrastructure Limited and Malaysia Airports Holdings Berhad (MAHB), alleged purported national security threats, economic and financial damages and undue advantages for the consortium.

Speaking at the book launching ceremony, Home Minister Jameel said it was the duty of the most capable people in the country to step forward and help “liberate” the nation from “grave problems” during the current “difficult times”.

Jameel claimed the former DQP presidential candidate’s book would reveal a number of facts that the Maldivian people were unaware of before the signing of the agreement.

The Home Minister added that he hoped ongoing efforts by the coalition of parties supporting the current government would yield results.

Dr Hassan Saeed was not responding to calls by Minivan News at time of press.

In his book, Saeed laid out three choices for the government: continuing the agreement in its current form, resolving disputes through dialogue or invalidating the agreement.

The DQP leader contended that cancelling the agreement and nationalising the airport would be the beneficial course of action for the nation.

“There is little hope that GMR would implement changes brought to the agreement through dialogue,” Saeed wrote. “GMR will change what is written in the agreement in black and white any time it pleases. For example, although the agreement states that 27 percent of from oil revenue must be paid to the state, it has been changed. GMR knows very well the skill to change the minds of the government of the day and its senior officials.”

Saeed further claimed that the concession agreement posed dangers to national security, in addition to being contrary to public interest and violating the constitution, the Public Finance Act and the Companies Act.

If the airport was not nationalised in the near future, since all parties in the ruling coalition opposed the deal, Saeed argued that the presidential election in 2013 would become “a referendum” on annulling the agreement.

Saeed claimed that GMR would donate large sums of money to parties in favour of keeping the agreement in place.

Conceding that cancelling the agreement would strain relations with India, Saeed contended that the move would be beneficial in the long-term to both countries.

Saeed compared cancelling the deal to “taking bitter medicine to cure a disease” or “amputating an organ to stop the spread of cancer.”

The book also likened GMR to the Indian Borah traders expelled from the Maldives by former President Ibrahim Nasir.

IFC role

Meanwhile, in June this year, a delegation from the International Finance Corporation (IFC) – a member of the World Bank group and the largest global institution focused on the private sector in developing countries – met with senior government officials to address concerns over the concession agreement.

On the bidding process, which was organised by the IFC and “evaluated based on the payment of an upfront fee as well as annual concession fees as a percentage of gross revenues to the government”, a document by the organisation explained that, “Each bidder was required to demonstrate that it had the requisite experience in developing, designing, constructing, operating, and financing airports of a similar size.

“The technical solutions proposed by the bidders were also expected to consider the specific conditions on Hulhulé Island,  including its physical and environmental constraints, and the coordination required between conventional aviation activities, seaplanes, and motor boats.

“The cornerstone of the project was the construction of a new passenger terminal expected to meet LEED silver criteria and to be carbonneutral—i.e., to minimize energy consumption and carbon emissions through the use of energy-efficiency and renewable-energy technologies, and minimize water consumption. The bidders were also asked to make specific, predefined improvements to the existing airport infrastructure, and to manage all core airport services, including the provision of fuel—a historically established role at Malé airport.”

However, in early September, the government accused the IFC of negligence during the bidding process for INIA – allegations there were rejected by the organisation amidst continued calls from government-aligned parties to renationalise the airport.

Both the government and GMR are presently involved in an arbitration case in Singapore over the airport development.

Previous publications

In August, Dr Hassan Saeed released a book in English entitled, “Democracy betrayed: behind the mask of the island President”.

Speaking to local media at the book’s launch at the studios of private broadcaster Villa Television (VTV), DQP Secretary General Abdullah Ameen said the book detailed reasons why former President Nasheed had to resign on February 7.

Ameen added that the reasons mentioned in the book included the controversial detention of Criminal Court Chief Judge Abdulla Mohamed and allegations that Nasheed wished to “destroy the values of Islam” in the country.

In the months leading up to the controversial transfer of power on February 7, the DQP published a pamphlet titled ‘President Nasheed’s devious plot to destroy the Islamic faith of Maldivians’.

In an interview with UK’s the Guardian newspaper recently, Saeed said the charges were justified. “You look at his behaviour, his actions, you have to come to that conclusion,” Saeed said.

The Nasheed administration had slammed the publication at the time for containing “extremist, bigoted and hate-filled rhetoric”. The pamphlet and religious-based allegations also led to successive attempts by the Nasheed administration to arrest two senior members of the party and sparked a debate on freedom of expression and hate speech in the Maldives.

Saeed was also a co-author of the book Freedom of Religion, Apostasy and Islam, which discussed the issue of apostasy in Islam and stirred controversy during the 2008 presidential election.

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“We will celebrate liberation of airport on February 7”: Sheikh Imran

Adhaalath Party President Sheikh Imran Adbulla has said that the people of the Maldives will celebrate the liberation of Ibrahim Nasir International Airport (INIA) on the first anniversary of the resignation of the previous government – February 7, 2013, local media has reported.

The comments were made at a press conference held by a coalition of NGOs and political parties opposed to the deal with the Indian infrastructure company GMR – signed by former President Mohamed Nasheed’s administration – to develop and manage the country’s international airport.

Imran predicted there would be “some unrest and damage” on the day the deal is annulled, but urged people to come out and support the calls for nationalisation  – although the GMR deal is actually a 25 year lease arrangement and the airport still belongs to the government.

Minivan News was unable to gain further comment from the Adhaalath Party members at the time of press.

Imran said the Maldivian population would be able to endure economic hardship should the deal be annulled, before threatening “a completely different activity” should the government fail to resolve the issue to the coalition’s satisfaction.

“February 7 this year should suffice to make this clear [to the government],” Imran was quoted as saying by Haveeru.

“We were talking about a particular thing and a particular person completed it. Therefore, when the Maldivian people carry out these activities, too, in a certain way, the people who completes it will decide it a certain way. I hope the President has the courage, ability and steadfastness to take such a measure on behalf of the people,” he continued.

Imran’s comments are symptomatic of the incendiary rhetoric surrounding the airport, the nationalisation of which the Adhaalath Party has previously described as a “national jihad”.

The Civil Coalition of NGOs joined with the seven now-government aligned parties to campaign against the former Maldivian Democratic Party (MDP) led administration, most famously gathering on December 23 last year to defend Islam against what it perceived as irreligious tendencies in the Nasheed government.

The Coalition explained that it was to conduct a week of activities between November 3 – 9 in opposition to the deal, referred to as “airport week”, rather than the mass protest that had previously been planned.

Sun Online reported that the decision had been made owing to clashes with school exams and the government’s plans to celebrate the anniversary of 1988’s attempted coup on November 3.

The paper also reported that the week would be accompanied by the launching of songs and a special logo in support of the movement.

A large balloon has appeared in recent days over the skies of Male’ reading “GMR go home.”

However, previous attempts to organise demonstrations in opposition to the development met with disappointing results when a September protest was poorly attended.

One government-aligned party, the Dhivehi Rayyithunge Party (DRP), refused to join the September protest, arguing that the dispute ought to be resolved through the courts.

DRP leader Ahmed Thasmeen Ali has previously expressed his concerns that reneging on the GMR deal might have detrimental effects on investor confidence in what is already a perilous financial situation for the Maldives.

Abdulla Jabir, Deputy Leader of the Jumhoree Party (JP), has also been vocal about the economic impact of politicising the deal, criticising the Adhaalath Party.

“Sometimes they are religious experts, sometimes they are financial experts. But everyone loves Islam here. Right now, foreign investors are finding it difficult to understand the climate here,” Jabir told Minivan News earlier this month.

“This is not a perfect time for this issue to be happening with GMR,” he added. “I think these protests [against GMR] are unrealistic.”

The JP were, however, represented at the press conference, with State Minister for Fisheries and Agriculture Fuad Gasim reportedly suggesting that senior government figures were being pressured into silence over the deal.

Official government opposition to the deal is currently taking the form of investigations of the $511million deal via the country’s Anti Corruption Commission (ACC) as well as through a Singapore court of arbitration as agreed in the original contract.

However, the Attorney General has asked the Supreme Court to rule on whether the matter might be dealt with within the Maldivian court system.

Earlier this month, INIA CEO Andrew Harrison told Indian media that the company had received no official word from the Maldivian government concerning a resolution to the dispute.

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President opens Dharavandhoo airport in Baa Atoll

President Dr Mohamed Waheed Hassan and the First Lady Madame Ilham travelled to Baa Atoll yesterday to officially open Dharavandhoo airport.

Waheed gave a speech highlighting the importance of catering to tourist in the atoll which last year became the country’s first UNESCO Biosphere Reserve.

He also discussed the importance of developing the Maldives’ transport infrastructure  and aviation capacity.

Local media reported that helium balloons were used to remove the cloth covering the airport’s sign, marking the official opening.

Waheed had travelled the twenty minutes to Baa atoll from Ibrahim Nasir Interational Airport (INIA) in Male’ where, this morning, a giant helium balloon could be seen reading ‘Go Home GMR’, by the Indian company’s office.

The development of INIA by GMR – the largest in the country’s history – has been beset by controversy since it was agreed by the former administration with current government-aligned parties calling for the airport’s nationalisation.

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JP MP Jabir raises Maldives investment fears over lack of resolution in GMR dispute

Jumhoree Party (JP) Deputy Leader Abdulla Jabir has criticised attempts to “politicise” the dispute between the government and India-based GMR over an agreement to develop Ibrahim Nasir International Airport (INIA) – fearing a negative impact on foreign investment.

The claims were made as the government-aligned Adhaalath Party (AP), which promotes religiously conservative values in the country, has continued to call on fellow coalition partners including the JP to take part in a series of “events” in the capital to protest against GMR’s development of the airport.

Speaking to Minivan News, Jabir, who is also a serving MP, highlighted the importance of maintaining an “investor friendly” atmosphere in the Maldives despite calls by some of the JP’s government coalition partners to re-nationalise the airport.

The MP said he instead advocated for sitting down and trying to find a compromise between the government and GMR, which is contracted to develop and run the airport for 25 years.

The dispute has centred, in part, over concerns like a disputed US$25 Airport Development Charge (ADC) that was to be levied on each passenger travelling through the site. GMR has maintained the the charge was contractually agreed, but later offered to exclude Maldivian nationals from paying it after the matter was contested in the country’s courts.

With the dispute unresolved, Jabir said he had sent a request to the Public Accounts Committee of the People’s Majlis for a review of the contract signed between GMR and the government of former President Mohamed Nasheed to “better understand” the agreement.

Several former opposition parties now serving in the government of President Dr Mohamed Waheed Hassan have continued to raise allegations of possible corruption behind GMR’s bid to develop INIA – allegations refuted by the company and the former government.

Jabir maintained that discussion and analysis, rather than politicised rhetoric in the media and at public events, would be required to move forward with the issue in a manner that did not damage future investment opportunities.

“We need an investor friendly environment here. Politicians should be here to resolve issues not complicate them further,” he said. “Any allegations of misconduct should be investigated, but we should be able to sit down and discuss a resolution. Yet many people do not know about or even understand the deal that has been signed.”

Jabir claimed that the GMR contract should therefore be viewed as a business issue rather than a political problem, something that he claimed would require greater parliamentary understanding of the agreement signed by the former government.

Under the terms of the agreement – a US$511 million deal that represents the largest ever case of foreign investment in the Maldives – GMR agreed to a 25 year concession agreement to develop and manage the site, as well as to overhaul the existing terminal by the end of this year.

The document was overseen by the International Finance Corporation (IFC), a member of the World Bank group and the largest global institution focused on private sector projects in developing countries.

However, the Maldives government earlier this month accused the IFC of negligence during the bidding process for INIA – allegations there were rejected by the organisation.

Both the government and GMR are presently involved in an arbitration case in Singapore over the airport development.

Coalition response

The coalition parties making up the government of President Dr Mohamed Waheed Hassan have at times appeared divided over how to proceed in regards to GMR the contract.  Some parties like the Adhaalath Party have advocated to gather in Male’ as part of a rally next month calling for the airport to be “returned” to the Maldivian people.

Speaking to local media earlier this month, Adhaalath Party President Sheikh Imran Abdulla said that a ‘mass national gathering’ would be held at Male’s artificial beach area on November 3 at 4:00pm to coincide with Victory Day.  Victory Day is held in remembrance of a failed coup attempt that was thwarted in 1988.

Sheikh Imran told the Sun Online news service that the gathering was devised as part of ongoing attempts to try and “reclaim” the airport from GMR.  Imran was not responding to calls from Minivans News at the time of press.

Minivan News was also awaiting a response from Abdulla Ameen, Secretary General of the government-aligned Dhivehi Qaumee Party (DQP) at the time of press concerning its response to the proposed gathering.  The DQP had previously published a 24-page book claiming that the former government’s lease of INIA to GMR was a threat to local industry that would serve to “enslave the nation and its economy”.

Meanwhile, the Dhivehi Rayyithunge Party (DRP) claimed last month that while it held issues with the overall benefit to the Maldives from the GMR deal, “due process” had to be followed through proper legal channels in order to establish if any wrong doing had occurred with the airport contract.

Parliament review

JP Deputy Leader Jabir himself this week criticised certain high-profile political figures in the country over their response to the GMR contract.  He accused some of these figures of not “knowing what they are talking about” in regards to the deal, highlighting the need for a review of the agreement within the Public Accounts Committee.

Jabir was particularly critical of the Adhaalath Party’s response towards the GMR issue, which he claimed had complicated finding a resolution.

“Sometimes they are religious experts, sometimes they are financial experts. But everyone loves Islam here. Right now, foreign investors are finding it difficult to understand the climate here. This is not a perfect time for this issue to be happening with GMR,” he said. “I think these protests [against GMR] are unrealistic.”

Jabir claimed that from his experience as both a parliamentarian and business owner in the country, there was “no such thing” as a deal that cannot be renegotiated.

“However, if there is no talking then the country is only losing money whilst people take to the streets,” he added.

Earlier this month, INIA CEO Andrew Harrison told Indian media that the company had received no official word from the Maldivian government concerning a resolution to the dispute.

Yet despite MP Jabir’s concerns about the potential impacts the ongoing dispute over the airport development might have on future foreign investment, one national trade body recently played down fears that GMR’s case was proving to be economically detrimental to the Maldives.

The Maldives National Chamber of Commerce and Industries (MNCCI) claimed last month that legal wrangling between the government and GMR over the multi-million dollar airport development was not adversely harming confidence in the country’s “challenging” investment climate.

MNCCI Vice President Ishmael Asif contended that ongoing legal disputes linked to both the GMR agreement and another high-profile contract to manage a border control system with Malaysia-based Nexbis were not among concerns foreign investors had raised with the chamber.

“GMR has nothing to do with the investment climate here, at the end of the day it is a personal concern for the company and more a matter of local politics,” he claimed.

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GMR tells Indian television of Maldives government’s silence

Sunanda Jayaseelan, reporting for India’s CNBC -TV18, has been told by GMR’s management that it has received no official word from the Maldivian authorities regarding the troubled Ibrahim Nasir International Airport (INIA) development.

CEO of the GMR Maldives Andrew Harrison told the station that the company was open for dialogue.

“I don’t really understand how there could be a lack of transparency. Our position is quite clear. We are very transparent and open,” he said.

Sidharth Kapur, Chief Financial Officer of airports at GMR told the station that the investment climate in the country was not good.

“While we have invested both debt and equity into this project, these kind of problems naturally affect the investment climate of any region,” said Kapur.

Discussing the GMR case last week, the Maldives National Chamber of Commerce and Industries (MNCCI) assured Minivan News that investor confidence was not being harmed due to the legal wrangling, though he did describe the investment climate as “challenging”.

Government aligned parties have called for the airport to be nationalised while questions concerning the legality of the deal have seen the matter taken up in a Singapore arbitration court.

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