Tag: Ibrahim Nasir International Airport

Maldives facing prospect of ‘pen and paper’ border control should Nexbis fall through

Maldivian border control faces an uncertain future and a potential reversion to a ‘pen and paper’ system, an informed immigration source has warned.

The warning follows the donation of a passenger information system by the Indian government, in a bid to strengthen the Maldives’ ability to monitor arrivals.

The new Advance Passenger Information System (APIS), which is designed to provide passport information and other details of incoming travellers before their arrival, was formally handed to Maldivian officials on Sunday (March 17) by outgoing Indian High Commissioner Dnyaneshwar Mulay.

The system has been in place at Ibrahim Nasir International Airport (INIA) for the last few months and is one of a number of components used by immigration officials.

According to the Indian High Commission, the system was requested by the previous government and installed by a special technical team to ensure it functions correctly.

The APIS technology is not however a direct replacement for the existing border control system, provided by Malaysia-based Nexbis, authorities in the country have said.

Nexbis is currently involved in legal wrangling over whether the country’s Anti-Corruption Commission (ACC) has the power to compulsorily request the government to cease all work in relation to the border control system agreement.

The Nexbis border control system is still presently in use by immigration officials at INIA, after the Supreme Court issued an injunction halting the scrapping of the controversial system by parliament.

However, a source with knowledge of current immigration practices said no alternative border control system was available should the government terminate its concession agreement with Nexbis’.

“So far we don’t have any alternative to the [Nexbis] system going forward. We are using the system and waiting for the courts to decide. However, if the court decides [in favour of the ACC], we will need a new system in place,” the source told Minivan News. “Without [an alternative], the system would go haywire. A replacement would have to be found. We cannot go back to the 1970s and just use books and paper.”

The Indian APIS system will speed up the processing of arrivals through the immigration gates, as well as improve wider resources available to immigration officials, the source said.

APIS system is an internationally recognised means of collecting passenger data before an individual arrives at their destination, designed to allow immigration authorities to know if anyone on an incoming service is included on a watch-list or travel ban, authorities have said.

“Use of the system is mandatory for some countries, though not for the Maldives yet,” the source added. “Before they arrive, the system can identify if a passenger is on a watch-list and spot them. This process can be done much quicker now [by immigration officials].”

The data included within the APIS is provided by two of the world’s largest air authorities including the International Air Transport Association (IATA).

Although its use is mandatory for all services into Europe, the service is not at present required for all flight services to the Maldives, according to the source.

“Now we need a mandatory legal framework to make airlines coming into the country comply,” added the source. “There is a heavy charge for using this software, but I don’t think we have to pay at the moment as India has donated the technology.”

Despite legal wrangling over the future of the controversial border control agreement with Nexbis, the same source added that APIS would be compatible with any system used by authorities.

Immigration Controller Dr Mohamed Ali was not responding to calls from Minivan News at time of press.

Trafficking  concerns

While refuting allegations of any corruption or wrongdoing in being awarded a contract under the previous government to install and operate a border control system for the Maldives, Nexbis earlier this year said it would not rule out criminal involvement behind attempts to “sabotage” its contract with the government.

Immigration control has become a massive issue for the Maldives in recent years with the country appearing on the US State Department’s Tier Two Watch List for Human Trafficking for three years in a row.

Back in January this year, the Ministry of Foreign Affairs inaugurated an initiative targeted at raising awareness of human trafficking issues in the Maldives.

Despite these commitments, the Human Rights Commission of Maldives (HRCM) has accused state and private sector employers in the country of lacking consistency in their efforts to address human trafficking in recent years, preventing “real” change in controlling illegal migration.

Speaking back in February 2013, HRCM member Jeehan Mahmoud told Minivan News that despite attempts under the present government to try and introduce new legislation, the Maldives had made little progress towards improving the treatment and rights of foreign workers over the last four years.

Addressing the current scope of unregistered foreign labour, Maldives Association of Construction Industry (MACI) President Mohamed Ali Janah said an estimated 40 percent of the foreign employees in the sector were thought not to be legally registered.

Considering these numbers, Janah said he too could not rule out the involvement of organised crime within some of the country’s employment agencies, which supply a large amount of foreign labour to building sites in the Maldives.

Correction:  A previous version of this article incorrectly stated that the Supreme Court was set to rule on whether Nexbis’ agreement with the Maldivian government to install and operate a border control system was legal.  The court case is actually being held to decide on whether the ACC has the power to order a halt to the project.  Minivan News has corrected the error.

Likes(0)Dislikes(0)

Managing Director of Male’ International Airport Limited appointed

Bandhu Ibrahim Saleem has been appointed as the Managing Director of Male’ International Airport Limited (MIAL), local media has reported.

President Mohamed Waheed Hassan Manik told local media that foreign experts are to be employed as the Chief Operations Officer and Chief Finance Officer at MIAL – established by the government to manage Ibrahim Nasir International Airport (INIA).

The President told local media that both short and media term development plans for the airport have been noted, and an advisory committee has been formed in order to move forward with them.

Waheed claimed that flight delays have been reduced “by a record level” and that the dollar shortage issue was currently being solved through income from the airport.

Likes(0)Dislikes(0)

MACL pays STO US$7.5 million in overdue jet fuel charges

The state-owned Maldives Airports Company Limited (MACL) has settled US$7.5 (MVR115 million) in outstanding jet fuel charges.

The payments, owed to the State Trading Organisation (STO), were left outstanding from before the government opted last November to void a contract with Infrastructure group GMR to manage and develop Ibrahim Nasir International Airport (INIA).

A deadline for payment of the bills had reportedly been set by the STO for December 2012, but was delayed after Singapore’s Supreme Court overturned an injunction blocking the Maldivian government from voiding its sovereign agreement with GMR.

STO Managing Director Managing Director Shahid Ali has said that after the state-owned MACL took over management of the site from GMR late last year, it also took on the developer’s existing contracts and therefore had been required to pay the outstanding fuel charges, local Newspaper Haveeru reported.

MACL is requested to pay a further US$2.5 million (MVR38.3 million) in unpaid fuel bills.

According to local media, GMR had signed a US$150 million (MVR2.3 billion) jet fuel supply deal in March last year that is set to expire in April 2013.

Likes(0)Dislikes(0)

No plans to privatise airport, “might sublease”: Tourism Minister Ahmed Adheeb

Minister of Tourism Ahmed Adheeb has said the government is not planning to hand over full control of operations at Ibrahim Nasir International Airport (INIA), but might sublease specific development projects to international parties through a “transparent” bidding process.

Minister Adheeb told Minivan News that privatising the only international airport allowed it to become a monopoly which was not in the best interests of the country.

“What we saw was that handing over operation of the only international airport in the country meant it was monopolised. What we are saying is that if the airport is given like that without any competition, it is not in the best interest of the country,” he said.

Adheeb admitted that INIA needed further development and refurbishment, including the addition of an extra runway, and said such projects would be subleased to developers through a transparent bidding process. He also maintained that “operation and control” of the airport would not be given away as he alleged the former government had done with GMR’s concession agreement.

President Mohamed Waheed Hassan also highlighted in an interview to India’s Business Standard that MACL would “open tenders for major development projects”.

“I think it’s too early to talk about the rebidding but, yes, MACL will open tenders for major development projects in connection with the airport modernisation program. GMR is eligible to participate. I don’t see any reason why Chinese companies should be barred from participating in the bidding process,” he told the Business Standard.

However, when contacted by Minivan News, MACL Managing Director Mohamed Ibrahim denied any knowledge of such bidding processes and said he did not wish to further comment on the matter.

Minister Adheeb said 75 percent of the tourists coming into the country were from Europe and following the “European [economic] crisis, the Maldives government should have provided an incentive to those tourists arriving to the country, but because of INIA being operated by GMR, several airport fees were raised.”

“Flight operators operate as a business. They will not consider us if we give no incentives in such a time of crisis and when the airport handling charges are too high. We have to understand that INIA is a tourist airport, it is not a shopping airport or a transit airport,” he explained.

Therefore, the Minister said that the country needed an efficient airport where tourists can go through quickly, with an efficient check-in system.

Earlier on February 2, Qatar Airways CEO Akbar Al Baker warned the airline will re-consider flying to the Maldives if the airport operator maintained its plan to raise airport handling fees at INIA by 51 percent.

Reuters at the time reported that the airline was “‘dismayed’” over what it understood to be GMR’s plan to increase the handling fee at a future date, and suggested such a move would “threaten Qatar Airways’ continued presence in the Maldives.”

However, the GMR Group at the time denied the allegations stating that it had had received no official communication from the airline about its concerns.

GMR spokesman Amir Ali responded at the time saying that the fee hike had already been made by MACL shortly before GMR assumed control of the airport, adding that while there were no plans for a further increase at present, prices were dependent on factors such as fuel costs.

Adheeb also alleged that the former government intended to rush the development process of the airport rather than a “well contemplated phase by phase development plan”.

“Why do we really need to develop the airport to cater to four million people? We could have done that through proper planning in a phase by phase development process,” he said.

The INIA concession agreement

In 2010, the government of Maldives through its Finance Ministry, Maldives Airports Company Limited (MACL) and GMR-MAHB entered into a concession agreement withINIA 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 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.

Attorney General (AG) Azima Shukoor 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 favor 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 Abdulla Jihad presented the official handover documents to MACL Managing Director Mohamed Ibrahim, and said that the Maldives would pay whatever compensation was required “however difficult”.

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.

Scott Wilson Plan

Minister Adheeb said the Scott Wilson master plan produced during former President Maumoon Abdul Gayoom’s administration would have been “a better master plan to develop the airport.”

“Sir Scott Wilson’s master plan to development of INIA was a good master plan. We actually did not require a plan to be implemented immediately. The plan was to develop the airport in a phase by phase development process. Some of the development projects had already been completed at the time the airport was given to GMR for development,” he explained.

Following the signing of the concession agreement of INIA with India’s GMR group, the Scott Wilson master plan was abandoned for a new master plan produced by the International Finance Corporation (IFC) through another foreign consultancy firm – Halcrow – which the current government claimed was more costly.

“Scott Wilson’s phase one cost us US$390 million, and all the three phases summed up came to a figure around US$590 million. The IFC did not provide this information to the government. We are talking about a development of 30 years,” former Civil Aviation and Communications Minister Dr Ahmed Shamheed said previously.

The current government criticised the IFC for abandoning the Scott Wilson plan for a more “costly master-plan”  and alleged that the World Bank affiliated group had been “irresponsible” and “negligent” in advising the former government of President Mohamed Nasheed in the concession of INIA by Indian infrastructure giant GMR.

However the IFC denied the allegations, stating that its advice was geared towards achieving the “objective of upgrading the airport and ensuring compliance with applicable international regulations” and providing the Maldives government “with the maximum possible revenue”.

“A competitive tender was organised with the objective of selecting a world-class, experienced airport operator, who would rehabilitate, develop, operate and maintain the airport,” said an IFC spokesperson at the time.

Airport Development Charge

Highlighting the Airport Development Charge (ADC) that the former government intended to charge – prompting criticism from the opposition parties who are now currently in government of President Waheed – Adheeb said that the former administration proceeded to taking ADC without legislation.

“The way they intended to charge ADC was not a mechanism established in anywhere in the world. ADC is taken through a proper legislation and should be flexible and adjustable in parallel with the inflation rate,” he contended.

On November last year, former President Mohamed Nasheed’s government’s Transport Minister Adil Saleem announced that GMR will begin charging international passengers a US$25 (MVR 385.5) ADC at the departure check-in counters of INIA for all flights scheduled after 12:00am on January 1, 2012.

Saleem stated at the time that the fee had been previously approved by the government as part of its contract with GMR.

The matter was soon taken to Civil Court by then opposition Dhivehi Qaumee Party (DQP) – led by current Special Advisor of President Waheed, Dr Hassan Saeed. The DQP claimed that a pre-existing Airport Service Charge (ASC) of US$18 (MVR 277.56) invalidated the ADC.

The Civil Court in December 2011 invalidated the ADC charge, ruling that the clause in the concession agreement with GMR violated the Airport Service Charges Act of 1978, which was amended in 2009 to raise the charge to US$18 for foreign passengers and US$12 for Maldivians above two years of age.

The current government, after ascension to power, claimed in a “cabinet-committee report” that it was “not in the best interest of the country” to appeal the Civil Court decision to High Court, and thereby ignored the decision.

The former government had honoured the concession agreement following the civil court ruling, and,  under instruction from a letter sent by MACL, had been deducting ADC revenue from concession fees due the government.

Following the ousting of the Maldivian Democratic Party (MDP)-led government on February 7, the new government – which included the DQP – inherited the crippled concession revenues, under which it was effectively obliged to pay GMR to develop the airport.

The new government received a succession of bills from the airport developer throughout 2012. 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 owed the airport developer US$3.7 million (MVR 57.05 million).

On May 8, GMR offered to exempt Maldivian nationals from paying the contentious ADC in a bid to end a legal and contractual stalemate that had given rise to MACL going bankrupt and the deprivation of the majority of all airport revenue that the government was to generate through the agreement.

However, despite attempts to renegotiate the issue, the government decided to terminate the agreement at risk of compensation. The ADC case is still pending in the Singapore Arbitration Court.

Adheeb stressed that such major projects that is pivotal to the country’s economy should not be taken without thorough research and proper consultation and analysis. The current government, he said, would address these issues “with patience and with a proper plan.”

He also added that the current government of President Waheed would seek towards a “balanced economic and foreign policy” that would be in the best interest of the country.

Likes(0)Dislikes(0)

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).

Likes(0)Dislikes(0)

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.

Likes(0)Dislikes(0)

Maldives repays US$50m loan to India

The Maldives government has this week repaid a US$50m loan  originally supplied by India to the previous administration of former President Mohamed Nasheed, local media has reported.

Citing senior government officials, local newspaper Haveeru reported that the repayment has been made Tuesday (December 4) after the Indian government said it would not be extending the repayment period for the funds.

India late last month requested that the Maldives government make US$50 million in treasury bond (T-bond) payments to India by December, with a second equal payment scheduled to be made in February 2013.

Diplomatic dispute

The Maldives government was in recent weeks been drawn into a diplomatic row with its Indian counterparts over a decision to dismiss an injunction granted to India-based infrastructure group GMR by the High Court of Singapore over the managing Ibrahim Nasir International Airport (INIA) in Male’.

Authorities in the country have opted to void the contract signed by GMR and the previous government, whilst vowing that the airport will be run by the state-owned Maldives Airport Company Limited (MACL) by Friday (December 7) even with the injunction issued by the Singaporean courts.

Indian media has meanwhile claimed that the Indian government is considering freezing aid to the economically-crippled archipelago, notably a US$25 million loan necessary for the payment of civil servant salaries and the construction of a police academy.

“We are not happy with the way Maldives cancelled the GMR airport deal. This has surely left an impact on our bilateral ties,” a foreign ministry official told AFP. “A decision whether the money should be given or not will be taken soon.”

However the Indian High Commission n Male’ has previously stressed to local media that the suggestion of cutting aid was “unofficial”, adding that such a decision would not be “unilateral”.

Likes(0)Dislikes(0)

Anti-GMR armada heads to Ibrahim Nasir International Airport for seaborne rally

The anti-GMR campaign took to the seas on Monday afternoon in an effort to increase pressure on the government to “reclaim” Ibrahim Nasir International Airport (INIA) from Indian infrastructure giant GMR.

A seaborne armada of about 15 dhonis carrying flags and banners circled the airport as part of an ongoing campaign to annul the contract signed between the former government and GMR to manage and develop a new terminal at INIA.

State Home Minister Abdulla Mohamed told Haveeru that 50,000 people have signed the petition put together by a group of NGOs seeking to annul the agreement and nationalise the airport.

In response to the large number of boats circling the airport, the Maldives National Defence Force (MNDF) increased its seaborne presence to counter the rally, using coastguard vessels to block the entrance to the airport harbour.

MNDF Colonel Abdul Raheem told Minivan News: We had no major concern yesterday, we did not increase our military presence at the airport itself, instead we wanted to make sure that no one [from the protest] could enter the airport area from the sea.”

Adhaalath Party President Sheikh Imran Abdulla told Haveeru the protesters had no intention of disembarking at the airport and that the purpose of the rally was to “observe airport operations in the area”.

Last week Sheikh Imran gave the government a six-day ultimatum to annul the GMR agreement (by November 15).

Former Minister of Economic Development Mahmood Razee said recent actions protesting the GMR agreement, such as Monday’s rally, risked putting off future foreign investors.

“This is the largest single investment the Maldives has seen, and if GMR do leave, it means that other investors who have previously expressed interest, or who may look to invest in the future, will be put off,” he warned.

“[Annulling the agreement] will also affect tourism, as the capacity we have to accommodate tourists at the airport is already very limited.

“Any further growth cannot be accommodated with the current airport facilities, and if GMR pull out, the government does not have the money to accommodate tourism growth.”

The demonstrators are calling for the government to terminate the agreement with GMR – a 25-year concession agreement to develop and manage the airport, and overhaul the existing terminal while a new one is constructed on the other side of the island. The agreement represents the largest case of foreign investment in the Maldives.

Former President Mohamed Nasheed, whose government approved the deal in 2010, this month slammed statements over the “reclaiming” of the airport from GMR. Nasheed claimed such comments were “highly irresponsible”, stating that such words from the government could cause irreparable damage to the country.

The present government has continued to press to “re-nationalise” the airport, with the country’s Deputy Tourism Minister confirming to Indian media in September that the administration would not “rule out the possibility of cancelling the award [to GMR]”.

Several other Indian companies operating in the Maldives have expressed concern over political interference that they say is derailing their substantial investments in the country.

Officials involved in the Apex Realty housing development project – a joint venture between developers SG18 and Indian super-conglomerate TATA – told India’s Business Standard publication 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.

The Adhaalath Party has recently stepped up efforts to oppose the upholding of the airport deal. A number of gatherings in the capital Male’ and a petition sent to the government have all been part of the party’s efforts.

Also against the GMR deal is the government-aligned DQP, whose leader Dr Hassan Saeed serves as special advisor to President Waheed, as well as being his party’s presidential candidate.

Last month, Dr Saeed launched a book concluding that the only option for “reclaiming the airport from GMR” is to invalidate or cancel the concession agreement.

Should the GMR deal be annulled, Sheik Imran has previously predicted there would be “some unrest and damage”, but urged people to come out and support the calls for nationalisation.

According to Imran, his rejection was not based on animosity towards India, as the GMR issue was “only a disagreement between the Maldivian government and a private company”. He expressed his hope that the Indian government would not get involved in the matter.

Likes(0)Dislikes(0)

Adhaalath Party head gives government six day ultimatium to renege on GMR airport deal

The government has been given less than a week to “reclaim” Ibrahim Nasir International Airport (INIA) from infrastructure group GMR under order of the religious conservative Adhaalath Party, a member of the coalition backing President Dr Mohamed Waheed Hassan.

Adhaalath Party President Sheikh Imran Abdullah gave the deadline yesterday, during a rally calling by November 15 for an annulment of the contract signed between the former government and GMR to manage and develop a new terminal at INIA.

Imran also told those gathered to stand ready for “activities on sea” planned for the November 12. The gathering, held yesterday at the artificial beach area of Male’, is expected to reconvene this evening.

Sheikh Imran was not responding to calls from Minivan News at the time of press, while fellow party member and State Islamic Minister Sheikh Mohamed Shaheem Ali Saeed said he did not wish to comment on the “GMR issue”, asking that he only be contacted over religious matters.

Former President Mohamed Nasheed, whose government approved the deal back in 2010, this month slammed statements over the “reclaiming” the airport from GMR.  Nasheed claimed such comments were “highly irresponsible”, stating that such words from the government could cause irreparable damage to the country.

Several Indian companies operating in the Maldives including GMR and TATA have also this month expressed concerns over political interference that they claimed is derailing their substantial investments in the country.

Following the controversial transfer of power on February 7, members of President Waheed’s unity government of President Dr Mohamed Waheed Hassan has swung between issuing reassurances within diplomatic circles that Indian investments in the country would be protected, while locally stepping up nationalisation rhetoric.

President’s Office Media Secretary Masood Imad and Spokesperson Abbas Adil Riza were also not returning calls on whether the government had been officially notified of the deadline or how it will proceed on the matter at time of press.

The present government has continued to press to “re-nationalise”the airport, with the country’s Deputy Tourism Minister confirming to Indian media in September that the administration would not “rule out the possibility of cancelling the award [to GMR]”.

Despite these pledges, government coalition partners including the Dhivehi Rayyithunge Party (DRP) and Jumhoree Party (JP) have both called for further investigation into alleged wrongdoing over the deal and to follow legal guidelines.

Senior representatives of both parties have told Minivan News that any potential action taken against GMR to be taken through the courts and after negotiations with the infrastructure group.  Any actions should then be conducted in a manner not detrimental to securing future foreign investment opportunities, both parties have concluded.

Under the terms of the agreement – an estimated 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.

The Maldives government has 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 that is anticipated to conclude by year end.

However, the Adhaalath Party, as part of a civil society coalition that was formed last year, has stepped up efforts of late to oppose upholding the airport deal.

The efforts have included an ongoing number of gatherings in the capital Male’, promotional material including a “Go Home GMR” balloon, the publication of a book on the deal and a petition sent to the government.

Local media reported this week that some 10,000 people had so far signed the petition.

Sheikh Imran has previously predicted there would be “some unrest and damage” should the GMR deal be annulled, but nontheless urged people to come out and support the calls for nationalisation.  The GMR deal is actually a 25 year lease arrangement and the airport still belongs to the government.

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.

Book launch

Also against the GMR deal is the government-aligned DQP, whose leader Dr Hassan Saeed serves as special advisor to president Waheed, as well as being his party’s presidential candidate.

Late last month, Dr Saeed launched a book authored by himself that concluded the only option for “reclaiming the airport from GMR” is to invalidate or cancel the concession agreement with the Indian infrastructure giant.

The DQP has claimed the book would reveal a number of facts that the Maldivian people were unaware of before the signing of the agreement.

It follows the publication last year of another DQP publication that claimed that the government’s lease of Ibrahim Nasir International Airport (INIA) to developer GMR posed a threat to local industry that will “enslave the nation and its economy”.

The Maldives National Chamber of Commerce and Industries (MNCCI) has previously claimed that legal wrangling between the government and India-based developer GMR over the multi-million dollar airport development would not harm confidence in the country’s admittedly “challenging” investment climate.

This week alone, cabinet ministers announced efforts were being taken to try expanding the number of investment opportunities available in the Maldives in order to generate greater interest from foreign enterprises.

Likes(0)Dislikes(0)