Tag: india

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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“Black rain” in Eydhafushi unsafe for use

The Public Health Unit (PHU) has warned Baa Atoll Eydhafushi Island residents against drinking or cooking with rainwater following a “black rain” shower on Tuesday.

Similar incidents of black colored rain were reported in Meemu Atoll Kolhufushi Island in 2011, and Haa Dhaal Atoll Kulhudhuffushi Island in 2006.

In 2013 there were further reports on Haa Dhaal Atoll Nolhivaram Island and Haa Dhaal Atoll Kurimbi Island, and in Dhaalu Atoll Meedhoo Island.

However, little seems to be known about the health implications of this occurrence. Islanders have speculated the phenomenon maybe acid rain.

“We advise people not to use the water for drinking or cooking, but they might be able to give it to their plants,” a Health Protection Agency (HPA) official told Minivan News.

The HPA said they have not observed any negative health effects from black rain yet.

Islanders are heavily dependent on rainwater for cooking and drinking, but many are now turning to store-bought mineral water as reserves run low in the dry season.

Senior Community Health Officer at Baa Atoll Hospital Sidqi Abdulla told Minivan News islanders were not concerned about threats posed by polluted water to their water supplies as the black rain was only seen on some parts of the island.

“This is the first time we’ve seen black rain in Eydhafushi,” he said.

However, he noted increased water insecurity in the island due to intrusion of saltwater into groundwater.

Although state officials have yet to confirm the reason for the black rain, research carried out by University of California’s Professor Veerabhadran Ramanathan indicates there is ten times more pollutants in the air mass north of the Maldives compared with the south.

The Cloud Aerosol Radiative Forcing Dynamics Experiment (CARDEX) carried out in 2012 suggests that soot and carbon from India are captured in ‘brown clouds,’ which drift over the North of the archipelago.

This pollutant layer, he argues, is an insidious mixture of soot, sulphates, nitrates and ash, Ramanathan has said.

Only the southern tip of the long island chain enjoys clean air coming all the way from Antarctica.

“The stunning part of the experiment was this pollutant layer which was three kilometre thick, cut down the sunlight reaching the ocean by more than 10%,” Ramanathan said in a BBC interview.

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Indian Chief of Army Staff to visit Maldives

India’s Chief of Army Staff General Bikram Singh will arrive in Maldives tomorrow on a two-day official visit. During the visit he will hold official bilateral talks with Maldives’ Chief of Defence force Major General Ahmed Shiyam.

He is also expected to pay courtesy visits to President Abdulla Yameen and Minister of Defence and National Security Mohamed Nazim.

General Singh’s  predecessor Chief of Army Staff General Deepak Kapoor also visited the Maldives in February 2010.

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GMR is only owed reimbursement, not compensation, says AG

Indian infrastructure giant GMR is only owed reimbursement for expenses, not compensation for the abrupt termination of the concession agreement to develop Malé International Airport (INIA), Attorney General Mohamed Anil has said.

Clarifying President Abdulla Yameen’s previous statement that GMR is owed a payment, Anil said the government believes the company is only owed reimbursement for a US$ 78 million upfront concession fee and any other expenses.

“When the agreement was first signed, US$78 million was given to the Maldivian government. In addition to that, we can see that they have spent some amount. So in the worst case scenario, if we are to revert to the state before the agreement was signed, everyone believes that they are owed [what they spent]. That is not as compensation for losses caused by the cancellation of the agreement,” he said.

GMR has said it will stick to a US$ 1.4 billion compensation claim – an amount that exceeds the annual state budget.

“The forceful takeover of the airport by Maldives government amounts to repudiation of a valid contract and therefore damages, including loss of future profit has to paid,” the company said in a statement on April 26.

Anil said GMR’s claim is unclear, as the company had not submitted documents detailing the assertion.

In response, GMR’s legal team member Uz. Fayyaz Ismail told Minivan News details of how GMR arrived at the figure will only be revealed in the second part of the arbitration process.

The arbitration tribunal in August 2013 had acceded to GMR’s request to split the proceedings in two – firstly determining liability, before quantifying the amount of compensation to be paid separately.

“GMR is claiming it to be a wrongful termination, and if the tribunal awards a verdict for that during the first part of this bifurcation arbitration [two part arbitration process] only then would the [compensation] amount be decided through second part of the arbitration. We are very confident the rightful compensation would be received,” Ismail said, adding that the figure may be subject to minor variations.

Yameen in early April said the Maldives government will not be able to pay GMR’s claim, but conceded “some sort of financial compensation must be paid.” He estimates the figure to be a “manageable” US$ 300 million.

The GMR in consortium with Malaysia Airports (MAHB) narrowly won the International Finance Corporation (IFC)-managed bid for the airport in 2010, and signed the agreement with MACL under the former government of Mohamed Nasheed. The opposition at the time, including Yameen’s Progressive Party of the Maldives (PPM), then began a vitriolic nationalist campaign to evict GMR.

Following Nasheed’s ouster in 2012, President Mohamed Waheed’s administration terminated the agreement claiming it was ‘void ab initio’- invalid from the outset.

When the Singaporean High Court’s injunction blocking the Maldivian government from voiding the agreement was overturned by the Supreme Court in Singapore in June 2013, GMR initiated an arbitration process.

The first part of the arbitration took place in Singapore from April 10 – 16. Minivan News understands the arbitration tribunal considered GMR’s claim of wrongful termination, parallel claim for loss of profits over the lifespan of the agreement, and the Maldive’s counter-claim for restitution.

A verdict is expected soon, at the latest by mid- June. Depending on the verdict, the second process of arbitration will begin on a mutually agreed upon date.

Although Anil said the second half could take months to begin or even year for a ruling, Ismail has refuted the claim.

Despite the pending arbitration decision, expansion and development of INIA was among the five mega-projects for which the government was seeking investors at the Maldives Investment Forum held in Singapore’s Marina Bay Sands in late April.

Meanwhile, Nasheed has warned of a sovereign debt crisis if the Maldives is forced to pay the full US$ 1.4 billion and reiterated his Maldivian Democratic Party’s (MDP) call to reverse the decision to cancel the contract.

In a press release last week, Nasheed insisted that international best practices were followed in the bidding process – which was overseen by the World Bank’s International Finance Corporation (IFC) – while the Anti-Corruption Commission (ACC) has since ruled out corruption in the airport deal.

“The Maldives is now known around the world as a country that doesn’t keep its promises or honour the contracts. The airport fiasco will hit each and every Maldivian because banks won’t lend money and companies won’t invest in our country without demanding much higher rates of interest,” Nasheed said.

“By now, Maldivians should have been looking forward to a world-class, new airport, to rival Kuala Lumpur, Singapore, and Hong Kong. Instead we have nothing but an abandoned building site. The actions of President [Abdulla] Yameen and [Dr Mohamed] Waheed have caused this crisis and Maldivians will be paying for their recklessness for decades to come” he added.

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Yameen concedes that GMR is owed some compensation

With additional reporting by Ahmed Rilwan

President Abdulla Yameen has today said the government was sure it would have to pay some compensation for cancelling the agreement made with the Indian infrastructure giant GMR to lease Ibrahim Nasir International Airport (INIA).

“The truth we should accept is that a government with all its sovereignty has given permission to a foreign party under an agreement,” said the president.

“So we believe some sort of financial compensation must be paid to them. A compensation must be given for taking the airport [from them]. What we are trying to make sure this compensation is not big but average.”

Yameen was speaking to the press before leaving for Singapore to take part in the Maldives Investment Forum – an event he described as “the first step taken towards a fresh start for the Maldives in today’s world economy”.

In November 2012, President Dr Mohamed Waheed’s cabinet declared the GMR agreement void ab initio – invalid from the outset – and ordered the developer to leave, just two years into its 25 year concession agreement.

President Yameen explained to the press today that his advisors believed that, if the arbitration panel could be persuaded that the deal had been anulled due to the airport’s national importance, the compensation would be small.

GMR had initially claimed US$1.4 billion – a figure greater than the Maldives’ annual state budget.

Yameen’s Progressive Party of Maldives (PPM) formed part of the Waheed coalition government, though it’s leader – former President Maumoon Abdul Gayoom – has since accuse Waheed of going against his party’s advice by failing to reach an amicable agreement with GMR and the Indian government.

During his first official state visit to Indian in January, Prime Minister Dr Manmohan Singh requested President Yameen to “amicably” settle the GMR airport issue.

Earlier this month, Yameen had said that the out-of-court amount sought by the infrastructure company was too great, and that he would now await the outcome of proceedings, which could take up to another two months.

The US$511 million concession agreement to manage and upgrade the airport – awarded under the former government of Mohamed Nasheed – was the single largest foreign investment in the Maldives’ history.

President Yameen will tomorrow give the keynote speak at the landmark investment forum, as he seeks to generate interest from foreign investors for five ‘mega-projects’ – one of which is the further development of Ibrahim Nasir International Airport (INIA).

As part of the president’s attempts to lure foreign investors back to the country, he has promised special economic zones which hopes will be “likened to cities in Dubai or the Emirates” and “the [business] environment we have in Singapore.”

Senior management of Singapore’s Changi International Airport visited the Maldives earlier this month, with Yameen explaining the purpose of the visit to press this afternoon.

“Changi’s management will be our final consultant with the terminal [project] and other consultancies required for the airport,” he explained. “We want to seek technical expertise and information on how to do things from Singapore Changi.”

“The project has progressed far now, Changi has expressed interest. So we believe all the supervisory and consultancy work of this terminal will be carried out by Changi.”

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Islamic minister completes first official visit to India

After concluding his official visit to India – the first by a Maldivian Islamic minister – Sheikh Mohamed Shaheem Ali Saeed has said that building a close relationship with the Indian Muslim community will be beneficial to the Maldives.

“I saw that the Indian Muslim community is a community of service. As per information I have received officially India has, after Indonesia, the second biggest Muslim population in the world. There are 140 million Muslims living there. So I think having a close relationship between the Indian Muslim community and Maldives will be a very good move.” He said.

Shaheem said that his trip had brought solutions were found for many concerns, particularly to “comments made by some people in the international community stating that there are Maldivians who support religious extremism”.

He said building relationships with countries with Muslim minorities will improve the image of the Maldives, and that neighboring countries will be relieved when the Islamic minister visits them and explains the policies of the ministry.

During the visit Shaheem met the Vice President of India Shri Mohamed Hamid Ansari, discussing ministry policies. Shaheem assured the vice president that the Maldives is a peace-loving nation and that there is no space for extremist ideologies within the Maldivian community.

During the trip, the Indian government assured that higher education scholarships would be made available for Maldivian scholars at Indian universities.

Islamic universities through which these scholarships will be provided include Delhi based Jamia Millia Islamia (National Islamic University), Osmania University in Hyderabad, and Aligarh Muslim University in Uttar Pradesh.

Indian Imams who have by-hearted the whole Quran, will be visiting the Maldives to recite Quran at Taraweeh prayers during Ramadan, Saheem said.

Minister Shaheem also met the Union Minister of Minority Affairs Dr K. Rahman Khan – head of Central Waqf Council – along with leaders of the Indian Muslim community, discussing the management and development of Waqf properties, Zakat funds, and Hajj corporations.

Muslim leaders assured the minister that businessmen and members of India’s Muslim community will be interested building mosques as a service to the Maldives.

Islamic university

Shaheem said that both parties agreed on academic exchanges between the two countries, particularly in providing the assistance of Indian scholars’ with experience required to establish the Maldives’ Kulliyyathul Dhiraasathil Islamiyya (College of Islamic Studies) as an Islamic University.

“It is a government pledge included in the manifesto, so the government is working towards that goal now,”  said Shaheem – who is also the chair of the special committee on establishing the Islamic University formed by the cabinet’s Social Council.

He said the project would be implemented jointly by the Education Ministry, Islamic Ministry, President’s Office, and the Kulliyyaa.

“We have been talking about it [the establishment of the an] at all our trips. There are two ways in which we require assistance. One is technical assitance to change the Kulliyaa in to an Islamic University – things such maintaining the quality, number of faculties, development of the curriculum and strategic plan,” said Shaheem.

“The second form is financial assistance in improving the status the place.”

The International Islamic University Malaysia (IIUM) will take lead in the development of the curriculum and other technical support for the establishment of the University.

According to Shaheem, official communications have already started with IIUM, with all the necessary assistance to be provided.

“One of the main targets is to make this university in Maldives an institution which provides Islamic education for the entire region as well,” Shaheem said.

In the acquisition of financial assistance, Qatar and Kuwait have given a positive response after the Vice President Dr Mohamed Jameel Ahmed’s requests during his recent visits, and the issue will be raised again during his upcoming visit to Saudi Arabia, Shaheem revealed.

While a specific date has not been announced for the establishment of the university Jameel has said it will be established soon.

Speaking Kulliyyathul Dhiraasaathil Islamiyy’s graduation ceremony on Friday, Jameel said that the government believes that development and progress in the Maldives should come within Islamic principles and the Islamic code of conduct.

He said that in this regard the government has begun work to bring major reforms to the education system, under which arabic language and Islamic values will be introduced through the new curriculum next year.

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Islamic Minister reportedly planning Islamic university in Maldives

Representatives of the Maldivian government have requested assistance from India’s Jamia Millia Islamia University in setting up an Islamic University in the country, reports Indian media.

The Business Standard reports that a delegation from the Islamic Ministry, led by Sheikh Mohamed Shaheem Ali Saeed, has visited the Delhi-based national Islamic university.

“Highlighting the Maldives’ successful assimilation of Western education into Islam, the visiting minister underscored the need to promote Islam, which was liberal, tolerant and integrated varied influences,” reported the Business Standard.

As part of an Islamic education drive, the current government has introduced Arabic lessons to schools, promising to focus on Islamic education and the study of Quran.

The paper reported Shameem as pointing out the Maldives’ had been “immensely successful in making women equal stakeholders in the country’s affairs as was evident from the assumption of high offices by them in different walks of life.”

Following the conclusion of the country’s recent Majlis elections, both the Commonwealth and the EU observer missions noted the “extremely low numbers of female candidates,” with a total of 23 female candidates – just 5 of whom were elected.

The World Economic Forum last year reported that Maldivian women experienced relative equality in terms of health and education, they were found to be falling behind in terms of political and economic participation.

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India permits 291 tonnes of pulses to be exported to Maldives until 2016-17

India has permitted exports of an estimated 291 tonnes of pulses, the shipment of which is banned, to Maldives until 2016-17, reported the Economic Times.

The Directorate General of Foreign Trade has said in a recent statement, “Export of pulses to Maldives has been permitted for the years 2014-15 to 2016-17,” reported the online media outlet.

According to the report, a source stated that although exports of pulses are banned, the Indian government ships the commodity to the neighbouring country for diplomatic purposes.

Pulses exports have been banned in India since June 2006 in order to augment the domestic supply and to check prices.

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Fishermen invited to register for MVR10,000 allowance on April 1

Application forms will be available on April 1 for fishermen to register in the government’s scheme to provide MVR10,000 (US$648) during lean months, President Abdulla Yameen said last night.

Addressing supporters in Gaaf Dhaalu Thinadhoo at a rally held to celebrate the Progressive Coalition’s victory in the parliamentary polls, President Yameen said the allowance will be released to fishermen before the end of May “when all the calculations and documentation are done.”

Marinas for fishermen would meanwhile be complete by the end of the year, Yameen said.

A MVR10,000 allowance to fishermen “regardless of catch” during lean months was a campaign pledge of candidate Yameen and the now-ruling Progressive Party of Maldives (PPM).

In an interview with Minivan News in January, Fisheries Minister Dr Mohamed Shainy explained that the allowance will be provided through an insurance scheme.

“If you look at the skipjack fishing statistics for last year, you will see three or four months which are very difficult for the fishermen. The real goal of this is sustainability,” he said.

“So the aim of the government is to ensure that even during these difficult months fishermen stay in the industry. For that reason, during those few months we want to give a payment so that they can do their basic necessities, so they can fulfil their daily obligations towards their family. The MVR10,000 scheme is a top-up system.”

He stressed that the MVR10,000 was not a subsidy as the productivity of the fisheries industry has been increasing since the downturn in 2004.

“So now we need to make the industry stand alone and be more vibrant and shock-proof to absorb these shocks. We need to devise a way to get people’s minds set on the idea that they can work in the industry. The real reason is the sustainability of the fishermen in the industry to keep them in the field during this low season,” he said.

Cheaper diesel

According to the President’s Office, President Yameen also said that discussions were ongoing between the State Trading Organisation (STO) and the Indian government to arrange the supply of petroleum products.

When the talks are concluded, Yameen said the price of oil would fall during the next two months.

Duing Indian Foreign Minister Salman Khurshid’s visit to the Maldives last month, an agreement was reached to supply diesel, petrol, and aviation fuels “on favourable terms” from the Mangalore Refinery & Petrochemicals Ltd, a subsidiary of India’s state-owned Oil and Natural Gas Corporation.

Following President Yameen’s state visit to India in January – his first official overseas trip since assuming office in November – senior government figures described Indo-Maldives ties as being “as strong as they were during [former President Maumoon Abdul] Gayoom’s time in power”.

Meanwhile, in his speech last night, President Yameen reportedly said that the government has undertaken efforts to attract foreign investors to the country, which would create jobs for unemployed youth.

Among the projects in the pipeline for Thinadhoo that President Yameen announced last night included road construction, land reclamation, construction of a sports arena, and broadening tourism.

With the prevailing political stability and the mandate given to the current administration by the public in the presidential and parliamentary polls, Yameen said he believed that the government could commence mega-projects and transform the Maldives to “this region’s Singapore.”

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