Tag: INIA

President predicts US$300 million compensation for GMR

The Maldivian government believes GMR is owed US$300 million in compensation for the premature termination of the contract to develop the Ibrahim Nasir International Airport (INIA) instead of the US$1.4 billion the company is seeking, President Abdulla Yameen Abdul Gayoom told reporters upon his return to Malé last night.

Speaking to press after returning from Singapore to attend the Maldives Investment Forum, President Yameen insisted that the arbitration proceedings over GMR’s compensation claim has not deterred investors.

The INIA development project was the most popular among attendees at the forum, he said.

“The biggest interest was for the airport,” Yameen said.

The event – which took place on April 25 – was attended by over over 160 companies and nearly 200 representatives from 16 countries, and was the first overseas investor forum organised by the Maldives.

GMR compensation claim

Speaking to the press at the airport, Yameen argued that the previous government was within its rights to terminate the contract as it “damaged state and national interests”.

But since GMR had carried out some of the development works at the airport, the government has to pay compensation, he conceded.

President Yameen said that the compensation payment would affect the state budget, but added that $300 million is a “manageable” sum.

The state-owned Maldives Airports Company Limited (MACL), which now manages the airport, is “saving up” that sum, he said.

This statement comes after GMR is reportedly sticking to the US$1.4 billion compensation claim for the abrupt termination by the Maldivian government in December 2012.

“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. Thus, GMR’s claim is $1.4 billion,” Indian media reported the Bangalore-based infrastructure giant as saying in a statement on Friday (April 25).

Investment forum

On the investor forum, President Yameen said companies were also interested in developing a trans-shipment port in the north of the country, along with economic stimulation investments in Hulhumale’.

The island is a reclamation project to the north of Male’ to cater for the housing, industrial and developmental demands of the capital.

“Alongside (interests for the airport), there was (interest) for the economic development of Hulhumale’,” President Yameen said.

“Some large Chinese companies brought us (proposals) to develop a township in Hulhumale’, in addition to different (development) components for the airport. God willing, if we can put the effort, there is a lot to be gained here,” he added.

Moreover, the Ministry of Transport is seeking investors for building four new domestic airports. They are to be established on Haa Alif Huvanadhoo, Alif Alif Mathiveri, Faafu Magoodhoo and Meemu Muli.

The government is proposing leasing one or two islands for 25 years for resort development to the investors under a public-private partnership (PPP) programme in addition to a customs duty exemption for all equipment and material imported for the airport projects.

Moreover, the government has also made an announcement seeking a developer to expand Hanimaadhoo International Airport in the north of the country.

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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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MACL launches new air traffic control system

The Maldives Airport Company Ltd (MACL) today launched it Automatic Dependent Surveillance Broadcast – ADS-B – system, at a function at Trader’s hotel in Malé.

The new air traffic control technology will replace radar surveillance – introduced in 2010 –  at a fraction of the cost of providing full radar coverage at Ibrahim Nasir International Airport  (INIA). MACL has invested over MVR6million to integrate the system into the current Malé Area Control Centre.

Four ground stations have been installed – two at INIA, one in Kulhuduffushi, and one in Fuvahulah.

“With duplicated ground stations deployed across Maldives, it can give ATC surveillance capability over 98% of Flight Information Region above FL300 (30,000 feet) and surveillance over the entire domestic sector,” read an MACL press release.

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Airport development begins, with “no chance” of GMR returning to project

The Maldives Airports Company Limited (MACL) has begun a program to further develop the airport, to be done in multiple phases.

Launching a program worth US$5 million to develop Ibrahim Nasir International Airport’s (INIA) ground handling on Thursday, MACL Managing Director ‘Bandhu’ Ibrahim Saleem revealed that various plans had been set in place for the development of INIA.

President Abdulla Yameen has today been quoted in Indian media as stating that any future management of the airport will not be carried out by foreign companies – with the Maldives government itself the preferred overseer.

Saleem told local media that, in addition to the introduction of new baggage tractors – launched during Thursday’s event – the company will also be introducing four new passenger carrier buses, heavy load vehicles for baggage carrying, a new baggage staircase and a mechanism to assist with boarding and unboarding patients with medical conditions within a period of 60 days.

He added that the projects are being conducted under the government’s 100 day policy implementation plans.

The record US$511 million development of the airport under Indian infrastructure giant GMR was prematurely terminated under the previous administration, prompting the filing of a US$1.4 billion arbitration case in Singapore.

Saleem explained that the ground handling equipment currently in use is old and damaged, which causes unnecessary delays in operations, assuring that the introduction of new equipment will allow passengers to observe a “remarkable improvement” in the speed of service.

“We are spending company money on these programs. We have not been able to purchase any such equipment since 2007,” he was quoted as saying.

Many projects underway

According to Saleem, the program is one among many development plans the company is undertaking.

Stating that the biggest challenge faced by the airport today is the issue of flight trafficking, he said that a permanent solution to overcrowding in the airport can only be found through the building of a second runway. He did, however, note that such a project would take a “tremendous amount of time”.

Adding that a review of the previously compiled Scottwilson development master plan of the airport would commence in the next two weeks, Saleem said that compiling such a plan anew would take around one year. He stated that global experts will be arriving within two weeks to assist in reviewing and updating the plans.

While the government is deliberating on undertaking such a project, said Saleem, reclaiming land and building a new runway would itself take at least two years to reach completion.

“Flyme is bringing in a new plane. Maldivian is also bringing in another new plane. So we need a runway upgrade at the airport as soon as possible. Nevertheless, it is not an easy thing to do,” he said.

The managing director added that, while these projects are pending, the airport is currently implementing smaller development projects immediately. As an example, he revealed that the construction of a new 35,000 square meter flight apron will be contracted to an external party in the next two weeks.

“We cannot do airport development in bits and pieces separately. It must be done all together. Once the Stockwilson plan is reviewed, we can begin the main work,” he said.

Saleem added that in 2014 itself, the airport traffic will increase immensely, and that the government will be focusing on reviewing the Stockwilson plan with a focus on connecting the airport to Malé.

GMR welcome to engage in other projects, not airport development: president

Meanwhile, President Abdulla Yameen has told Indian media that the Maldivian government is not even considering resuming the airport development contract with Indian infrastructure giant GMR.

While he repeated that the government is seeking an out of court settlement regarding the arbitration case concerning the cancellation of the GMR contract in the Waheed administration, Yameen said that the Maldives “had nothing against the GMR itself”.

“I am not saying we are saying no to GMR. What I am saying is total management of the airport is far too important for the Maldivian government (to hand over). We have nothing against GMR of any Indian company. It is just that the international airport is far too important for us, commercially and from a security point of view,” Yameen is quoted as saying to Indian publication The Hindu.

“The total operation of our airport will probably not go to any foreign party. Probably not even go to a Maldivian company. It will be undertaken by the MACL, a 100 percent government company,” he stated.

Yameen affirmed that deliberations of settling the GMR issue out of court has already begun, adding that the company is welcome to pursue other projects in the country.

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PPM fought whole world to win the election: ‘Sun Travel’ Shiyam

Resort owner and government-aligned politician Ahmed ‘Sun Travel’ Shiyam has said that the Progressive Party of Maldives (PPM) won the presidential election by fighting the entire international community.

“We had to fight with the whole world to win the presidential election. The EU, made up of 30 countries, the Commonwealth, our neighbouring countries, and several organisations were against us,” Shiyam was quoted as saying by Sun Online – party of the MP’s Sun Media Group.

Shiyam’s Maldivian Development Alliance formed an alliance with the PPM going into the repeatedly-delayed presidential polls, supporting the eventual winner Yameen Abdul Gayoom.

“Even the UN was working 24 hours to make sure that we lose the election,” Shiyam was quoted as telling a rally in Male’ yesterday evening.

The annulment of the first round of the presidential election – held on September 7 – was followed by further delays to the rescheduled poll, bringing strong criticism from international actors, whose observer missions had found no problems with the initial vote.

After conducting its own review of the a secret police intelligence report purported to demonstrate voting irregularities, the UN argued that there was no disenfranchisement and that the voter register had met with international standards.

Newly elected President Yameen, meanwhile, struck a more conciliatory tone yesterday, assuring the Indian Prime Minister of his administration’s desire for enhanced bilateral ties.

Writing to Manmohan Singh, the President’s Office website reported Yameen as emphasising that “diverse Indo-Maldives people-to-people contact offers avenues for further cooperation”.

Yameen also urged Singh to pay an official visit to the Maldives as soon as it was mutually convenient to do so.

The Maldives’ traditionally close ties with India came under increasing strain under the previous government – of which the PPM was a prominent partner. The cancellation of a deal to develop Ibrahim Nasir International Airport  in December 2012 was a particularly  contentious issue.

During a visit to India in June, former President and PPM leader Maumoon Abdul Gayoom told the Indian PM of his disappointment that the Maldives’ relationship with India had been impacted upon by the then-government’s decision to evict GMR from the country with seven days notice.

“This was a mistake. Had he consulted all political parties, the public would not have formed the impression that corruption had taken place,” Gayoom was reported as saying in the Hindu.

The cancellation of the project is currently being investigated in a Singapore court of arbitration, with the Indian infrastructure company seeking US$1.4 billion in compensation – more than the Maldives’ annual budget.

The government’s sudden eviction of the Indian investor was quickly followed by a list of 11 grievances handed to all senior Maldivian reporters by the Indian High Commission in January this year.

The list included concerns such as discrimination against Indian expatriates and the confiscation of passports by Maldivian employers.

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Flight delays as airport ground handling staff call in sick en masse

Ground handling staff at Maldives’ Ibrahim Nasir International Airport (INIA) have called in sick en masse in protest over pay grievances, leading to flight departure delays today.

The Maldives Airports Corporation Ltd (MACL) has downplayed the matter and said “operations at the airport are normal.”

A ground handling staff member who wished to remain anonymous told Minivan News that staff called in sick starting at 11:00 pm on Wednesday. Only eight of the 16 scheduled staff turned up for the night shift, while only four of the 16 scheduled staff reported for the morning and afternoon shifts, the source said.

MACL’s HR Manager Ali Huzaim confirmed that “some ground handling staff have called in sick,” but said the reduced man power had not affected flight departures.

“Labour laws guarantee employees 30 days of sick leave in a year. This is a right they have. There are some who have called in sick in the ground-handling department. However, there have been no flight delays because of reduced manpower,” Huzaim said.

CEO of MACL, Ibrahim ‘Bandu’ Saleem said 10-12 percent of the company’s employees were on leave at any given point and that today was no different.

“Operations are normal at the airport,” Saleem said.

Despite Huzaim’s claim there were no delays in flight departures, ground handling staff told Minivan News that Condor Flight DE 3327, Air India Flight AI 264, Hainan Airline Flight HU 7952, Singapore Airline Flight SQ 461, and British Airways Flight BA 2042 faced between 30-45 minutes delay in departure.

Minivan News confirmed the reports independently. Flights arriving in the Maldives meanwhile experienced only minor delays today.

“MACL has not carried out work appraisals for two years now, which means we do not get any promotions. The company regulations stipulate that a percentage of profits be distributed among the company’s staff. However, that has not happened. Further, we still continue to turn up to work in GMR’s uniforms,” they said.

GMR-MAHB won a concession agreement to manage and upgrade Ibrahim Nasir International Airport (INIA) under the Maldivian Democratic Party (MDP) administration, which was ousted from power on 7 February 2012 amid protests and a police mutiny.

The new government, comprising a coalition of former opposition parties under current President Mohamed Waheed, declared in late 2012 that GMR-MAHB’s agreement was ‘void ab initio’ (invalid from the outset) and gave the developer seven days’ notice to leave the country.

“We have had several meetings with [MACL management] about our grievances, but we have had no response from them,” the source added.

Meanwhile, Air Traffic Controllers (ATC) who started calling in sick en masse on Sunday, Monday, Tuesday and Wednesday have resumed work following a Wednesday night meeting with Saleem, an air traffic controller who wished to remain anonymous told Minivan News.

The ATCs are demanding the reinstatement of a professional grading system, adherence to International Civil Aviation Organisation (ICAO), and the holding of the presidential run-off election that remains suspended by the Supreme Court.

On Wednesday, MACL denied the delays from the ATCs calling in sick; however, pilots and Trans Maldivian Airways confirmed some delays due to the protest.

Ahmed Fazeel, Business Development Manager at Trans Maldivian said although seaplanes were operating without any delays today, the company had experienced delays on Wednesday because of “something to do with the air traffic controllers.”

Staff at Maldives Customs Services also stopped work today in protest over corruption and unequal treatment of employees.

The Tourism Employees Association of the Maldives (TEAM) and Maldives Ports Workers Union (MPWU) last week threatened prolonged strikes over the Supreme Court’s order to delay elections in an ongoing case filed by Jumhooree Party to annul the first round of presidential elections held on September 7.

The two organisations have told Minivan News they are waiting on the Supreme Court verdict to decide how to proceed.

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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.

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Home minister confident ahead of parliamentary no-confidence vote

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

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

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

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

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

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

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

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

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

MDP allegations

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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Maldives airport operator praises “smooth” handover as government remains undecided on INIA future

The Maldives Airports Company Limited (MACL) has said there has been no disruption to services at Ibrahim Nasir International Airport (INIA) after it resumed management of the site from infrastructure group GMR on Saturday (December 8 )  – a claim backed by several resort operators and airlines.

Indian-based GMR yesterday handed INIA over to the state-owned Maldives Airports Company Limited (MACL) after the Maldivian government had voided its concession agreement, giving the company seven days to leave the country.

The sudden eviction of the developer – which won a 25 year concession under the former government to manage and upgrade the airport – scraps the project, which at US$511 million was the single largest foreign investment in the Maldives.

Upon reclaiming management of the airport yesterday, MACL Managing Director Mohamed Ibrahim told Minivan News that the handover had gone “smoothly”, with INIA continuing to operate over the last 24 hours as it had done under GMR.

“We have the same staff and equipment here as before [the handover]. Two years back we handed over the same equipment to GMR and there has been no discontinuation of service,” he said.

As part the GMR’s concession agreement, aside from developing an entirely new airport terminal building, the company had also undertaken work to renovate and update INIA’s existing terminal structures and operations – including retail and baggage handling facilities.

With MACL once again managing the site, a senior services manager for one of the largest airlines presently flying to the Maldives told Minivan News that it had experienced “no issues at all” in terms of operating in and out of the country since the handover.

Similarly, the general manager of a resort in Male Atoll also stressed that there had been no disruptions to service.

“Certainly so far there has been no impacts on our arrivals or departures, things seem to have gone smoothly,” the general manager said.

Future direction

When contacted about the future for the airport post-GMR, the President’s Office today told Minivan News that no decision had yet been taken on when – or if – the country would look to tender a new privatisation agreement for the site.

“Nothing of that kind has been decided,” said President’s Office Media Secretary Masood Imad.

Asked as to what action would be taken over the existing structures put in place by GMR before work on its proposed new terminal was halted over a permit dispute earlier this year, Masood questioned why the President’s Office had been contacted over the technical “nitty gritty” of the airport.

“We don’t micromanage all aspects of the airport, these are questions for the Transport Ministry,” he said.

Development conference calls

Meanwhile, the religious Adhaalath Party, which forms part of the government coalition of President Dr Mohamed Waheed Hassan, today called for a national level conference to be held on how INIA should be developed and operated in future.

Speaking at a press conference, party President Sheikh Imran Abdullah told local media that the airport development should not be delayed, calling for a conference to be held to air opinions on how best to proceed in future – not ruling out foreign expertise if needed.

“All people involved in this sector should come together soon for a national conference, the result of which should be a vision of how the airport should be operated in the future,” he was quoted by Sun Online.

Sheikh Imran was not responding to calls from Minivan News at time of press.

In recent months, the Adhaalath Party has been among several key government-aligned parties working to oppose the GMR agreement.

Sheikh Imran has previously predicted there would be “some unrest and damage” should the GMR deal be annulled, but nonetheless urged people to come out and support the calls for nationalisation.  The GMR deal was a 25 year concession agreement, with the airport still belonging to the government.

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