Government signs Male International Airport to GMR-Malaysia Airports consortium

The government today signed a 25 year lease agreement with the GMR-Malaysia Airport Holdings consortium to develop and manage Male’ International Airport, hours after parliament voted in favour of a bill requiring parliamentary approval of lease transactions with overseas parties.

Chairman of the Privatisation Committee, Mahmoud Razee, claimed parliament’s decision today would not impact the signing “as it yet to be ratified by the president.”

The signing ceremony was scheduled for yesterday but was derailed at the eleventh hour after reported disagreements between board members of the Maldives Airport Company Limited (MACL), the organisation which currently manages the airport.

Minivan News understands the four MACL board positions were reshuffled by the government last night in an effort to proceed with the signing today, although this has yet to be officially confirmed – new chairman Ibrahim Saleem, also Chairman of the Maldives Tourism Development Corporation (MTDC), signed the contract today in place of former chairman Ibrahim Nooradeen.

An official of the President’s Office observed to Minivan News that as the MACL is a public company with 100 percent of its shares owned by the government, “it is the duty of the board to act in the interests of the major shareholder.”

Minivan News is currently seeking comment from the board members.

Under the new agreement, the consortium will establish a new local company to manage the airport which will be operated by Malaysia Airlines Holdings. The Maldives National Defence Force (MNDF) will remain in charge of security, and immigration will remain under government control. A briefing document obtained by Minivan News also indicates that the agreement comes with a clause that no staff can be made redundant for two years unless for “disciplinary or performance related reasons.”

The deal has proved controversial with four opposition parties signing a statement on Saturday evening condemning the decision on nationalistic grounds, arguing that handing management of the airport to a foreign company compromised the sovereignty of the Maldives.

Deputy Leader of the main opposition Dhivehi Rayyithunge Party (DRP), Ibrahim Shareef, said last week that the DRP would not honour “shady deals of this type” if it came to power in the next election, unless they were approved by parliament, while today another of the party’s deputy leaders, Umar Naseer, said the deal was “ridiculous” and would result in the dismissal of half the airport’s 3000 staff.

Speaking briefly to the media following the signing, Managing Director of GMR Infrastructure Sri Pathi hinted acknowledgement of the controversy, stating that “airports always belong to the people – never to us.”

“Please don’t think we came here to take over the airport,” he said. “We perhaps become the trustees – but emotionally in terms of ownership it belongs to the people. We are of course here to invest our money and make a business deal on the best terms possible – but the airport still belongs to the people. We make a commitment that we will operate the airport to the best international standards that we can, and prove to you that the trust you place in us will never be betrayed.”

Managing Director of Malaysia Airports Holdings, Basheer Ahmed, noted that the majority Malaysian-government owned company managed 39 airports in Malaysia and several overseas, including airports in Hyderbad and Delhi.

“Every country needs an excellent airport because it is the visitor’s first impression,” he said.

The briefing document obtained by Minivan News contains forecasts of the government’s expected earnings (reportedly provided by GMR) from the airport over the lifespan of the contract. It reveals that a majority of the predicted revenue, a major factor in calculating the NPV (net present value) used to determine the successful bid, derives from the 27 percent fuel revenue share once the airport is completed in 2014:

  • 2015-2020: 12.8m gross + 74.25m fuel = US$87.05m per year
  • 2020-2025- 17.02m gross + 90.99m fuel = US$108.01m per year
  • 2025-2035 – 20.43 gross + 108.27m fuel = US$128.7 m per year

The document contrasted this with the dividends paid to the government by MACL over the last three years, noting that the majority of the dividends paid in 2008-2009 were achieved “by taking a loan.”

  • 2007 – 2.3 million
  • 2008 – 13.3 million
  • 2009 – 5.05 million

On the suggestion that MACL should be allowed to raise finance and invest in the upgrade itself, a predicted US$300-400 million, the document noted that MACL “already has debts of Rf 600 million (US$46.69 million)” and would be unable to obtain further leverage “without a sovereign guarantee – simply not allowed due to the IMF measures.”

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The airport was signed to GMR-MAH late this afternoon.

Meanwhile, daily newspaper Haveeru featured an interview with the Turkish-French consortium TAV-ADPM, who have reportedly expressed dissatisfaction of the bid evaluation process “and urged for a re-evaluation of the bids.”

“The newspapers started reporting that GMR won the bid even though we were not told the party who won the bid. We faced many problems, since the two companies in our consortium are also listed in stock exchange,” Haveerru reported head of the consortium, Gusiloo Betkin, as saying. “It cannot be said that a certain party won the bid without signing the concession agreement.”

Betkin expressed disbelief to Haveeru that the GMR-MAH bid could offer the government 27 percent of fuel trade “without facing any loss. We are a party that provides services to 170 million passengers annually in 39 airports. We also have experience in fuel trade,” Betkin told the newspaper.

TAV-ADPM had offered 16.5 percent of fuel trade to the government, he noted, the highest deemed feasible, and that at 27 percent, flight arrivals to the Maldives would be affected by rising fuel prices.

“The main thing is the fuel. If the fuel prices are high, no one will take in fuel from there – Maldives will lose that income. The airlines will also focus to other destinations,” Betkin told Haveeru.

The government’s Net Present Value calculations:

  • TAV-ADPM
    Upfront fee: US$7m
    Variable concession fees share – non fuel – 2011-2014: 31%
    Variable concession fees – fuel – 2011-2014: 16.5%
    Variable concession fees share – non fuel – 2015-2025: 29.5%
    Variable concession fees – fuel – 2015-2025: 16.5%
    NPV: 454.04
  • GMR-MAH
    Upfront fee: US$78m
    Variable concession fees share – non fuel – 2011-2014: 1%
    Variable concession fees – fuel – 2011-2014: 15%
    Variable concession fees share – non fuel – 2015-2025: 10%
    Variable concession fees – fuel – 2015-2025: 27%
    NPV: 495.18
  • Unique-GVK
    Upfront fee: US$27m
    Variable concession fees share – non fuel – 2011-2014: 27%
    Variable concession fees – fuel – 2011-2014: 9%
    Variable concession fees share – non fuel – 2015-2025: 9%
    Variable concession fees – fuel – 2015-2025: 9%
    NPV: 266.94
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Take Lale School back from Biz Atoll: HRCM to Education Ministry

A report by the Human Rights Commission of the Maldives (HRCM) into Lale Youth International School on Hulhumale has recommended that the Education Ministry terminate its contract with Maldives-registered company Biz Atoll Pvt Ltd to manage Lale Youth International School, “and hand over management as soon as possible to a qualified party.

The Commission’s investigation had found that students had been “physically and psychologically abused, discriminated against and bullied,” the report stated, recommending “that police should investigate the physical and psychological abuse going on at the school as an urgent concern,” and “separate those suspected of physical abuse from the school’s students until the police investigation is concluded.”

The report also questioned the educational standards of the private school, observing that despite the “high fees” charged for students to attend, the school “has no laboratory for students preparing for the IGCSE” in 2011, the library “does not have books that students need”, and most of the Turkish teachers “do not know English and are therefore unable to teach.”

The government-run Fareediyya School was handed to Biz Atoll and a group of philanthropic Turkish businessmen in 2008, under an agreement made between Biz Atoll and the Education Ministry during the former administration.

In May this year, Minivan News reported concerns raised by parents and staff that the school was being used as ‘a front’ for other activities, highlighting anomalies such as ‘phantom’ foreign teachers who were being paid but had never reported to work, students being charged an assortment of fees arbitrarily, teachers with missing or fraudulent qualifications, and significant pay discrepancies between Turkish and other foreign staff.

Shortly after the Minivan News report was published, (now former) Principal of Lale Serkan Akar attempted to leave the country, leading to the confiscation of his passport. On a second attempt to leave he was taken into police custody and is currently in the criminal court facing assault charges for allegedly strangling and whipping a child with a belt, charges he has denied.

Since the story was published, Minivan News has learned that website has been blocked the school’s web filter.

The HRCM report also recommended that the school move to “dismiss employees with criminal records” and amend the school’s child protection policy to ensure that “inappropriate persons” did not work with students, and amend employment contracts “to allow adequate disciplinary action” against those suspected of physical abuse.

HRCM further recommended that Biz Atoll immediately submit the credentials of foreign teachers to the Maldives Qualification Authority (MQA) for approval, and stipulate that foreign teachers present certification of English qualification such as IELTS or TOEFL – and dismiss those teachers who did not meet the criteria listed in regulations governing private schools.

HRCM also suggested that the school establish a laboratory and library as required in its agreement with the Education Ministry, and hire a full-time librarian. It should also “immediately cease the practice of giving the same examination paper to students until they pass” and “stop charging additional fees other than those set by the Ministry” while ensuring that those fees “are commensurate to the quality of education offered.”

The HRCM report also raised concerns about the school’s adherence to employment practices in the Maldives, noting “allegations of discrimination and mistreatment of Asian and Maldivian staff”. It recommended the school establish both a school board, as required by law, and a mechanism for teachers to resolve employment issues.

HRCM also recommended the school formulate a pay scheme in accordance with employment laws “to eliminate discrimination and ensure fairness and transparency”, as well as “reimburse employees if a deposit has been subtracted from their salaries to allow them to keep their passports.”

Furthermore, the Education Ministry should formulate regulations governing international schools “to ensure supervision and monitoring by the ministry as a regulatory body”, and “establish guidelines to conduct follow-ups to supervision reports.”

“As the school was not handed over to the proprietor in a transparent manner and because the Education Ministry has not undertaken adequate efforts to improve matters at the school, and since corruption has been noted, these cases should be investigated,” HRCM’s report concluded.

HumanRightsCommission'sLogoForGallery
HRCM has recommended the government repossess Lale School from Biz Atoll

Response

Managing Director of Biz Atoll, Abdulla Jameel, said the company had read the report “and are reviewing the necessary actions we have to take.”

“We will bring changes to the school,” he promised, noting that a new principal would be starting “quite soon”.

The arrangement with the Turkish funders of the school would “definitely” continue, he noted.

Regarding HRCM’s recommendation that the school be repossessed from Biz Atoll and given to “a qualified party”, Jameel said the decision was “up to the government”.

“I respect the professional work of HRCM, but at the same time I’m disappointed it has mentioned nothing positive about the school,” he said, noting its reputation for “academic excellence.”

“Given the opportunity, we will continue to manage the school and try our best to make it the number one school in the Maldives.”

Jameel would not comment on the child abuse case pending against the former principal Akar.

Deputy Minister of Education Dr Abdullah Nazeer said the Education Ministry “received the report on Thursday” and was now seeking legal advice from the Attorney General’s office concerning the repossession of the school.

“We don’t agree with all the findings [in the HRCM report] – there are certain issues we need to refute from the ministry’s side, and we have communicated this in writing,” he said. “It was very unfortunate the report was not amended [before it was released].”

“The word used repeatedly to describe the Education Ministry is ‘irresponsible’,” he said, “[but] we were the ones who first contacted police, and based on that HRCM investigated the school.”

Police had yet to find evidence to support any allegations of abuse, he claimed.

The report was critical of the ministry’s decision to review the contract with Biz Atoll during the investigation, Dr Nazeer noted.

“We added amendements to the earlier contract (requesting a new principal in three months and including a termination clause),” he explained.

There were only “very general written regulations” governing the ministry’s role in supervising privately-owned and operated schools, he noted. “The regulations do not specifically say the government should intervene,” he said.

The Education Ministry was already seeking to resolve the employment issues at the school Dr Nazeer said, and had sent a letter to Biz Atoll on the subject

“We also had a complaint from a parent that the former Principal [Serkan Akar] was still accessing the school grounds,” he said. “We also wrote a letter to Biz Atoll saying it was not appropriate for a person currently involved in a court case concerning child abuse to be accessing the school.”

Dr Nazeer also noted that a delegation of officials from the Turkish government and the business community, had arrived in the Maldives and was currently meeting members of parliament to discuss the matter together with the the Turkish Consular General in Male’.

“I can’t comment on the delegation as I am yet to have a meeting with them,” Dr Nazeer said. “I don’t know what they will discuss.”

“As far as we are concerned, we are waiting for the Attorney General’s office to determine the gravity of the findings in the report, and if they agree, provide advice for terminating the contract.”

Download the full HRCM investigation report (Dhivehi)

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GMR shares rise on back of Maldives deal: Centre for Asia Pacific Aviation

Shares in Maldives GMR Infrastructure shares soared 5.5 percent to INR60 in morning trade on the Bombay Stock Exchange (BSE) on Friday, after announcing the day before that it was awarded the contract to manage and expand Male International Airport in the Maldives, the Centre for Asia Pacific Aviation (CAPA) has reported.

GMR Infrastructure stock closed 0.5 percent  higher.

GMR Infrastructure reportedly offered US$78 million upfront for the contract, plus 1 percent of total profits in the first year (until 2014) and 10 percent of profits from 2015 to 2035.

Meanwhile, Maldives Airports Company Ltd (MACL) reported an 11.6 percent year-on-year increase in net profit to US$20.1 million for the 12 months ended 31-Dec-2009.

MACL also declared the payment of USD4.9 million in dividends to the Maldives Government, an increase of 36.7 percent year-on-year, and a payment of 1 percent of net profit, US$200,886, as bonus to its employees.

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Protect Islam in the Maldives – don’t use it as a political tool: SAAG

The Maldivian constitution places a heavy responsibility on the present government to tread a careful path in developing democracy and at the same time ensure that there is no deviation of any citizen from his/her adherence to Islam, writes Dr S Chandrasekharan for the South Asia Analysis Group (SAAG).

It is claimed that it is possible to establish such a balance and it will be interesting to see how Maldives under the present President Nasheed who in many ways is a liberal himself is able to manage his country and keeps it safe from extremism.

In the days of Gayoom, it was easy to keep track of visitors and prevent elements holding extremist views from visiting or from preaching, but in a democracy as is being practised now, it is difficult for the present government to prevent such visitors from coming in or from such persons making rigid interpretation of Islam.

The result is that on the invitation of religious NGOs within the islands or from the Islamic ministry itself, visitors with dubious background are allowed to come preach without restraint.

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Woman on Kinbidhoo attempts suicide after death of 10 month-old child

An Indian woman living on the island of Kinbidhoo in Thaa Atoll has been admitted to hospital after allegedly smothering her 10 month child and attempting suicide in Kinbidhoo this afternoon, an island official has claimed.

The woman was discovered by people on the island and rescued before she could kill herself, the official told Minivan News.

”Her husband is from Kinbidhoo, he works in the island court as a court secretary. She is quite young,” he said. ”They both had some disputes two days ago and it continued until today.”

”After killing the child she attempted to kill herself, but people discovered her and rescued her,” he alleged. ”She was taken to the health centre as she was in a bad condition. The health centre said that she had taken pills and tried to hang herself.”

Police Sub-Inspector Ahmed Shiyam confirmed the woman was hospitalised in Kinbidhoo health centre, but said it was too early to establish murder charges.

”We cannot say whether the child was murdered yet,” said Shiyam. ”There are more investigations to be conducted.”

He declined to give more information as the investigation was ongoing.

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Extremism impacting Maldivian women: Inter Press report

Authorities in the Maldives view women’s issues as a core human rights problem and are keen to tackle them head on, but cultural and religious issues often stand in the way, according to an Inter Press Service report by Feizal Samath.

‘No doubt the government of President Mohamed Nasheed recognises many problems and is willing to tackle them, but there’s limited ability to do so because of deep-rooted cultural and religious issues,’ according to a Maldivian journalist, who declined to be named.

Member of parliament Eva Abdulla, who belongs to Nasheed’s Maldivian Democratic Party (MDP) — which won power in May 2009, thus ending the 30- year-old reign of dictator Maumoon Abdul Gayoom — said the government firmly believes in affirmative action policies benefiting women.

‘The President has called for gender mainstreaming in both formulating and implementing government policies,’ she said. She stressed, however, that lack of staff and resources are undermining Nasheed’s good intentions.

Particularly worrying, she said, is the growing religious extremism in the Maldives and its impact on the lives of Maldivian women, who comprise around 48 percent of the country’s population of around 340,000.

‘Religion is all too often used as an excuse to limit women,’ she added.

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Boy missing in Male’ discovered in Addu Atoll

Police have located missing 14 year old Ahmed Laizam Latheef on Hithadhoo in Addu Atoll, after his family reported him missing at 11:30pm on Wednesday night.

Laizam is from Kashmeeruge in Seenu Feydhoo Atoll but was living at Ma. Velagala in Male’. His family reported him missing after he left home to pray in the nearby mosque across the road but did not return.

A family member told Minivan News the boy was not used to going anywhere alone, ”and he only goes to the mosque by himself as it is very close to our house.”

Police Sub-Inspector Ahmed Shiyam said Laizam had taken a boat to Addu Atoll where we was staying with relatives on Hithadhoo.

“Police confirmed he was there, but he was sleeping so we didn’t disturb him,” Shiyam said, adding that police are now investigating why he left home.

“At this time, we can’t say why he left home,” Shiyam said. “He went by himself – nobody told him to go.”

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Australian PM replaced by deputy in sudden party coup

Australian Prime Minister Kevin Rudd was disposed last night by his party, with his deputy Julia Gillard being sworn in today as the country’s new leader, and first female prime minister.

Rudd, who is on good terms with President Mohamed Nasheed, was elected in a landslide win in 2007 as leader of the Labor Party, but fell victim to factions within the party after his opinion polls plummeted, in what Australian Associated Press described as “a cloak-and-dagger plot hatched by shadowy backroom operators.”

“I have given my absolute all,” Rudd said, struggling to retain his composure in his final speech two hours after he stood down.

“I was elected by the Australian people as the prime minister… to bring back a fair go for all Australians. I have given my absolute best to do that,” he said, adding that he was less proud of “blubbering”.

“Having said all that folks, we’ve gotta zip,” he concluded.

Gillard gave credit to Rudd “for leading the nation in such difficult times and keeping people in work,’’ but said the government “was losing its way.”

“I love this country and I was not going to sit idly by and watch an incoming opposition cut health, cut education and smash rights at work,” she said.

Australian commentators observed that Rudd’s popularity divebombed during a damaging fight with Australia’s monolithic mining industry over a proposed 40 percent tax on their profits.

However many acknowledged surprise at the sheer speed of Rudd’s eviction – none more than Rudd himself, who visibly struggled through his exit speech.

Gillard appeared slightly discontented at the shadowy nature of her arrival at the helm and accepted the role somewhat grudgingly, remarking that she would not move into the Prime Minister’s official residence until she was voted into power in the upcoming Australian election.

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Culinary exhibition aims to boost Maldivian chefs to world stage

At 2:30pm, the stage was set.

Two judges with mark sheets in hand made the rounds. Outside, three stations created for live cooking, were used each turn by three chefs from those who signed up for the live cooking demonstration.

Abdul Alim, who moments earlier had been manning the hotplate in the main restaurant, was sautéing a beef steak for his dish ‘sealed beef & roasted vegetable in paprika sauce.’

Meanwhile, a beaming Ali Abdul Rahman turns to a second batch for the live cooking demonstration.

“This is a rare chance for me – I’ve always wanted to participate in a culinary exhibition,” said the chef of 12 years of experience, 11 of which have been spent at Bandos Island Resort and Spa, the scene of the staff cooking competition held this week.

Rahman’s dish was ‘chicken with vegetable pad thai’, chosen as he wanted “a different taste, from a different country.”

Minutes later, Ali was all work, as he set about preparing a pad thai in 45 minutes. But later it would be chef Jayantha Amarasiri would walk away with the gold medal for his ‘beef fantasy’, a delicious prune and cheese-stuffed beef roulade, Cajun marinated beef steak with stir fried meatballs accompanied by mashed potato wrapped in spinach and a vegetable kebab.

Open to all staff at the resort, it was the second such annual exhibition held at Bandos. A range of categories including live cooking, dress the cake, authentic cuisine, vegetable and fruit carving gave the 27 participating chefs the chance to show off their skills.

“We want to motivate our chefs, and improve their culinary skills,” explained Ismail Shareef, Food and Beverage Director of Bandos Island Resort.

With special emphasis on encouraging the chefs to do well at competitions, Bandos recently participated in the Singapore Expo.

“This is also in preparation of Hotel Asia week that will be held later this year”, Ismail said.

The two judges presiding at the event were Chef Tyrell Wasalathathrie, executive chef at Water’s Edge in Colombo, and Chef Ishaq Salih, Executive Chef at the Royal Island Resort.

Name your cake

Inside the orchid room where all the pre-prepared items like the cold desserts and appetisers were laid out, ‘dressing the cake’ was in full swing.

Judge Tyrell wandered by and asked participant Wasantha Kumara – who was putting pink marzipan strips on his cake – what its name was.

“You should have a name for your cakes, by the time you finish them,” he said to the participants.

“It’s ‘pinkie bed’” piped in Abdulla Faiz – and sure enough, his cake was rectangular in size, with a pink drape over it, and even a pink head board. You couldn’t decide if it enticed you to eat it, or sleep in it.

Abdulla, an old hand on the exhibition circuit, had won a bronze in the Singapore Expo this year in a team event.

His work was fast and neat, and it was not much of a surprise when a couple of hours later, the first prize sign was displayed next to ‘pinkie bed’.

Bread presented for judging at the Bandos event
Bread presented for judging at the Bandos event

Honing Maldivian talent

The judges took each dish to task after the live cooking demonstration.

“You had a lovely marination going on, but the meat is so over-cooked that that one can’t taste it anymore,” said Judge Ishaq after a quick taste of a beef slice.

Judge Tyrell cut marks for sloppy presentation on some dessert dishes.

“They had enough time to do this, so the visuals should be balanced and neater than this,” he said, pointing to a sauce that was slanting to one side of the dish, next to a strategically-placed slice of cheese cake.

Ali Didi, an 18 year veteran of the field, said tips from the judges were invaluable for improving.

Like others, Ali also has a passion for participating in culinary exhibitions. He has won a silver and bronze in hot cooking on two separate occasions at the Hotel Asia exhibition.

The management of Bandos has plans to give more opportunities for Ali and his colleagues to indulge in this passion.

“Next year we’d like to expand this to holding an inter-resort culinary exhibition,” says Ismail. He says he looks forward to a day when more Maldivians will participate in international culinary exhibitions.

That day seems not far off, suggests Bandos proprietor Mohamed Waheed Deen: “with the right support Maldivians can achieve great heights in the culinary field.”

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