Tag: Ministry of Environment and Energy

PPM would pursue oil exploration, foreign investment: Abdulla Yameen

The potential for developing a domestic oil industry was launched as a campaign issue during a speech on Monday (January 14) by Progressive Party of the Maldives (PPM) presidential prospect, MP Abdulla Yameen.

Yameen proclaimed “when the PPM comes to power” it will conduct oil exploration, attract foreign investment and create 26,000 tourism jobs.

However, the Maldives’ environmental image and commitments are no obstacles to oil industry development, according to Tourism Minister Ahmed Adheeb – currently standing for nomination as the PPM’s vice president.

Adheeb told Minivan News the Maldives was “a big nation, and places not in marine protected zones or tourism areas could be explored for oil, like in the less developed north.”

“Oil exploration is a term and [we] cannot conclude something with out the details. Regulations and more planning need to be done,” he said.

The ‘Draft Maldives Fourth Tourism Master Plan’ released January 9 by the Ministry of Tourism, Arts and Culture emphasises the need for climate change mitigation, adaptation, and renewable energy as part of its five-year strategic plan.

“The tourism sector is expected to contribute to the carbon neutral goal by introducing measures over the next eight years for energy efficiency and replacing fossil fuel with renewable energy,” the report states.

The plan contains various strategic actions aimed at “developing and enforcing” management plans for [marine protected areas] and sensitive environments. This includes “implementing a low carbon program for the tourism industry”.

“A long-term focus on adopting reliable and affordable energy from renewable resources (like sun, wind, sea and biomass) provides an opportunity to enhance our tourism development model, already well known for its sustainable practices. A low carbon path for development has been identified as key development strategy in Maldives as a whole,” the report notes.

“[Economic] diversification is in line with the tourism master plan,” Adheeb told Minivan News.

“[The] first priority should be tourism [however] the economy needs to be diversified and protected,” he said.

Yameen pledges oil exploration

During the launch of the PPM ‘Team Yageen’ campaign, Yameen declared his platform would focus on foreign investment and the creation of job opportunities, local media reported.

“Given the current economic situation, local businessmen alone cannot create enough job opportunities. We must welcome foreign investors for the benefit of our nation,” Yameen said, according to Haveeru.

Yameen’s proposals include searching for oil, prioritising the tourism industry, and creating a cargo transit port.

Previous oil exploration attempts in 1980 found the cost of retrieving the oil was too high compared to the US$20 (MVR 308) price per barrel at the time. However the present price of US$125 (MVR 1925) per barrel made further exploration feasible.

“It is very possible oil might be found in the Maldives,” Yameen said.

“[The PPM] have a very close relationship with tourist resort owners. The [economic] benefits of the tourism industry are creating job opportunities through the [tourism goods and services] tax,” he added.

Team Umar’s stance

‘Team Yageen’s opposition for the PPM leadership, ‘Team Umar’, played down the proposal.

PPM Interim Vice President Umar Naseer said it was not acceptable for people in responsible portfolios of the government to talk about things that they could not do while they were in power.

Yameen’s proposal to search for oil in the Maldives was not new, Naseer claimed, noting that Yameen had plenty of time during the Gayoom administration to pursue such an agenda.

”Fifteen years is enough time for someone searching for oil to find it. ‘Team Umar’ will not make empty talk; if we are to search for oil, then we will find it and sell it,” said Naseer.

”These words are not new to us. If they had been new words they would have impressed ‘Team Umar’ as well,” he added.

Government biosphere and renewable energy commitments

The development of an oil industry in the Maldives would be an apparent reversal of President Mohamed Waheed’s declaration during the Rio 20+ UN Conference on Sustainable Development in June 2012 that the Maldives would “become the first country to be a marine reserve”.

During the conference, Waheed highlighted the 2012 establishment of the first UNESCO Biosphere reserve in Baa Atoll, as well as the Maldives’ commitment to carbon neutrality and sustainable development.

“Our tourism sector is a sustainable one, relying on the preservation of our magnificent coral reefs, beautiful beaches and our rich and diverse marine life,” Waheed stated.

The Maldives is meanwhile participating in the 3rd General Assembly of International Renewable Energy Agency (IRENA) in Abu Dhabi, United Arab Emirates, which started this week (13 January 2013).

Minister of Environment and Energy Dr Mariyam Shakeela has also highlighted the ongoing renewable energy activities undertaken by the Maldivian government and the necessity of renewable energy for mitigating climate change.

Shakeela recently signed a Memorandum of Understanding (MoU) with the Diesel Replacement Project of the Clinton Climate Initiative’s Clean Energy Initiative, a program of the William J Clinton Foundation.

The focus of this program is to enact “projects and policies that directly reduce greenhouse gas emissions” including renewable energy projects to reduce dependency on diesel fuel.

Likes(0)Dislikes(0)

State Environment Minister plays down budget dispute, alleges media “misunderstanding”

State Minister for Environment and Energy Abdul Matheen Mohamed has played down a report that his department yesterday slammed the proposed state budget for neglecting the “fundamental rights” of Maldivians, claiming there had been a “misunderstanding” with local media.

The Sun Online news agency yesterday reported that senior environment ministry officials had raised fears before the Majlis’ National Development Committee that it had been allotted an insufficient budget for proposed water and sewerage projects needed across the country.

Environment Ministry Permanent Secretary Ahmed Saleem was quoted as claiming that some 15 projects proposed by his department had been excluded from the budget is being debated within parliament this week. These projects were said to deal with issues including waste management, as well as supplying water and sewerage systems to more islands around the Maldives.

Saleem was reported as saying that complaints over the matter had also been sent to Finance Minister Abdulla Jihad, who had in turn had responded that any amendments to the budget would have to be made through the Majlis with support of MPs.

Both finance chief  Jihad and Economic Development Minister Ahmed Mohamed were not responding to calls from Minivan News at the time of press.

Speaking following yesterday’s meeting with the National Development Committee, Permanent Secretary Matheen claimed that Saleem’s reported comments had been the result of a “misunderstanding” by its author.  He alleged that the journalist had focused on a few points of a long meeting with the committee.

While Matheen said that there were some “concerns” about the present status of the budget allocated to the Environment Ministry, he that alleged the article’s conclusions were “very misleading”.

“The budget issue is very sensitive right now, so i’m afraid I cannot make any comments about the matter at present,” he said. “The islands are all asking what they will have from the ministry.”

Matheen added that he was presently unable to comment on the exact nature of the “misunderstanding” contained within the Sun Online report due to the fact discussions on finalising the state budget were ongoing.

Jumhoree Party (JP) MP Hassan Adil, a member of the National Development Committee, was unavailable for comment when contacted on the challenges in trying to balance ministry expenditure in the current economic climate, asking Minivan News to call this evening. However, Adil was not answering calls at the time of press.

Budget discussion

Presenting the budget to parliament last week, Finance Minister Jihad explained that next year’s budget deficit was to be financed with MVR 971 million (US$62 million) as budget support and MVR 1.3 billion (US$84 million) from Treasury bill (T-bill) sales.

However, as debate on the budget commenced yesterday amidst, regularly coming to a halt due to frequent loss of quorum – most MPs complained of the lack of funds allocated for development projects in their constituencies.  these projects included developments such as harbours, water and sanitation systems, additional classrooms and upgrades to health centres.

Meanwhile,  it was revealed last week that the proposed budget for defence expenditure for 2013 was found to be 14 percent higher than the funds allocated during 2012.

A total of MVR 930.9 million (US$60.3 million) was proposed for defence expenditure, which amounts to 5.5 percent of the total budget.

Balance of payments

With the Majlis currently contemplating the 2013 budget, an International Monetary Fund (IMF) mission to the Maldives last month noted that a ballooning fiscal deficit had “implied a rise in the public debt ratio, which now stands at over 80 percent of GDP.

According to the organisation, these developments also helped to boost national imports, thus worsening dollar shortages in the economy and putting pressure on MMA (Maldives Monetary Authority) reserves.”

The IMF forecast for the current account deficit was “nearly 30 percent of GDP this year.”

“Gross international reserves at the MMA have been declining slowly, [and] now account for just one and a half months of imports, and could be more substantially pressured if major borrowings maturing in the next few months are not rolled over,” the IMF mission warned.

The mission recommended formulating “a realistic and prudent budget for 2013″ to rein in the fiscal deficit, suggesting hiking taxes and “selectively” reversing import duty reductions.

According to an overview of the economy presented by the Finance Ministry along with the state budget (Dhivehi) proposed to parliament last week, the current account deficit in 2012 was expected to be 27 percent of GDP.

Water shortages

Following water shortages that authorities said affected over 100 inhabited islands back in May, Addu City Mayor Abdulla Sodig at the time claimed financial support was the key challenge in ensuring sufficient supplies of drinking water to the public, even with the assistance of local resorts and the Maldives National Defence Force (MNDF).

Minivan News reported back in April that in the country’s southerly Addu Atoll, an estimated 90 percent of the local population were reliant on rainfall to bolster their drinking water supplies.

Numerous islands in the atoll are said to experience severe supply issues for drinking water annually as a result.

Likes(0)Dislikes(0)

President Waheed expands cabinet

President Dr Mohamed Waheed Hassan has expanded his cabinet for the second time this month.

Dr Waheed this morning changed the name of the Ministry of Housing and Environment to the Ministry of Housing and Infrastructure and created a new ministry, the Ministry of Environment and Energy.

Former Minister for Housing and Environment Dr Mohamed Muiz has been reappointed to head the new infrastructure ministry, while Dr Mariyam Shakeela has been appointed to lead the Ministry for Environment and Energy. Both ministers were sworn in by Supreme Court Judge Abdulla Areef.

The division of the old Housing Ministry into two separate departments follow the division of the Ministry of Health and Family into the Ministry of Health and the Ministry of Gender, Family and Human Rights. Dr Ahmed Jamsheed was sworn in as Minister of Health while Dhiyana Saeed was brought into the cabinet as Minister of Gender, Family and Human Rights.

Likes(0)Dislikes(0)