Tag: minivan news

J Hotels and Resorts to sue government

J Hotels and Resorts intends to sue the government “at length” over the Cabinet’s decision to terminate the contract for Laamu Gan Asseyri Project, which was awarded in October.

Company chairman and former ruling party MP Abdulla Jabir said no explanation for the termination was given, and claimed it was not the first time that the Cabinet had retracted a decision.  He said he had “strong suspicions” of corrupt dealings.

“There are ruling party members who decided that they want the project, so they forced the President to terminate my contract through the Cabinet. The Cabinet is unfit to operate, it is just playing games on its high chair in the Maldives,” Jabir said.

The project was won via bidding and awarded on October 12 of this year. It includes a 50-year lease of 25 hectares for the development of hotels and 79 guest houses containing a total of 1,500 beds. Restaurants, spas and sports facilities were also included in the project plan.

Originally, a joint venture company was to be created with the government, which would earn a five percent share, and J Hotels and Resorts. State Minister for Tourism Thoyyib Mohamed was previously reported saying the government preferred a private party to develop and manage the whole project, but the ministry had a ‘Plan B’ to lease out separate components of the project to different parties.

According to the government gazette the Cabinet decided to terminate the contract on November 29, and has lately decided to re-open the bidding process.

Minister of Tourism Mariyam Zulfa was unavailable for comment, however Permanent Secretary Ahmed Solih said the ministry had sent its reply to J Hotels and emphasised that the issue now lies between the Ministry and the company.

Jabir warned that the Cabinet’s decision was one of several factors that was causing a dip in investor confidence.

“These are expensive games, for the investors and for the Maldivian people,” he said. “The government is losing credibility doing this. I am disappointed that the Maldivian government is dishonoring its agreement.”

According to Jabir, the contract between J Hotels and the Ministry of Tourism was valid under Maldivian contract law.

“We have incurred losses of income and opportunity, and our lawyer is assessing those losses now,” Jabir said, reiterating that the company plans to sue the government.

He further claims that a contract cannot be terminated unilaterally, as the Cabinet has done, and that the government cannot accept bids for a project which is the active subject of a lawsuit.

Jabir was unable to provide further details regarding losses incurred.

Last week, the Cabinet instructed the Attorney General’s Office to monitor allegations of corruption made against the government, and file defamation lawsuits where such allegations were proven unfounded.

The Cabinet’s request follows growing concern that some such allegations are being made for political purposes. Meanwhile, the acrobatics of local politics could have a detrimental effect on foreign investment.

At the same time, the government has been tasked with improving its latest ratings in Transparency International’s 2011 Corruption Perception Index (CPI), which were less than favorable.

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Dhiraagu launches BlackBerry

Dhiraagu has officially launched BlackBerry services, and now offers customers three BlackBerry Smartphone plans, which can be added to postpaid plans.

At  a press  conference  held  at  Dhiraagu  today Director of Marketing Ahmed  Maumoon said,  “After  a  very  successful  soft‐launch  period  for  thorough  testing  of  the  BES
solution  with  different  customer  groups  we  are  delighted  to  unveil  Dhiraagu  BlackBerry Smartphone Plans with the largest network in the Maldives.”

Maumoon commented that the preliminary soft launch period was proof Dhiraagu’s attention to customer needs and preferences.

In September of this  year, competitor Wataniya launched BlackBerry service in the Maldives. Officials at the time considered it an important step for business in the country, given the service’s reputation for strong security.

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GMR could colonise economy: DQP

A 24-page book released by Dhivehi Quamee Party (DQP) presents the government’s lease of Ibrahim Nasir International Airport (INIA) to developer GMR as a threat to local industry that will “enslave the nation and its economy”.

In the book, titled “Handing the airport to GMR: The beginning of slavery”, the DQP claim that the government has not only leased INIA operations to GMR, but  has allowed the company to open other businesses in the Maldives.

GMR Male’ Retail was recently registered at the Economic Ministry. It is the second GMR business registered in the Maldives.

Citing information available in the public domain, DQP alleges that all Hulhule island lagoon resources will become the property of GMR, including the Hulhule Island Hotel (HIH), in-flight catering services and the Maldivian Air Taxi service.

Because salaries paid to Maldivian employees are a burden, the book claims, GMR will bring in Indian employees and house them in Hulhumale, “creating a visa-free zone for Indians to come and go”, reads Haveeru’s translation.

DQP further alleges that the airport development budget covers the expense of building hotels, offices and apartments on Hulhule but claims that there is no official requirement for GMR to develop a runway – apparently a key benchmark of local benefits.

Meanwhile, GMR today held a ground-breaking ceremony at INIA today to celebrate the start of work on a new terminal.

When asked about the groundbreaking, DQP member Dr Mohamed Jameel commented that “any development is good as long as it benefits the people of the Maldives. But the main benefit would be a new runway, and we don’t see that GMR is contractually obligated to construct one. Our question is, who will do the runway?”

London Heathrow has two runways, and is the busiest airport in the world with over 65 million passengers annually. The new terminal in the Maldives will take the airport up to a capacity of five million.

Jameel said completed development projects are not contributing to national development.

Other claims in the book include that all foreign currency earned at the airport is being deposited abroad by GMR, leading to the current dollar shortage.

Jameel called the book “a responsible work in the sense that it highlights issues relating to overall economy. This issue is very close to the hearts of the Maldivian people since the work at the airport was originally done by the Maldivian people. And we don’t agree that the people have the best deal.”

Minivan News asked whether use of the word ‘slavery’ in the book’s title had a purpose.

“In modern times people don’t colonise by taking over other countries, they colonise through economic and business ventures. A small country like the Maldives is very vulnerable to its economic needs. We have a history of neighboring countries manipulating the Maldives through economy, and it has been difficult to break those ties,” said Jameel.

President’s Office Press Secretary Mohamed Zuhair said he felt the title’s wording was “very strong”, and drew a faulty comparison between international cooperation for mutual benefit and foreign occupation of a people and market for selfish purposes.

“The purpose of all this is to make Maldivians mistakenly feel like they are under occupation and the country is being sold out,” said Zuhair, who pointed out that the government “wouldn’t have gone out for an international bid [on the airport project] if there was a way to borrow money and do it internally.”

He explained that the airport now yields “a bulk” of the national revenue, in dollars: “If foreign visitors increase, income increases. It’s simple math.”

He added that the negative publicity could have a negative impact on relations with “a very friendly neighbor, India.”

Ultimately, Zuhair doubted that DQP’s book would deliver the desired outcome.

“Attempts to ferment nationalist sentiment against a profitable corporation are bound to fail because people are more aware of the issues. The income the government makes from the airport is already double what the previous government made.”

An informed source close to the former regime told Minivan News that the former government’s plans for airport development were not Male’ based, but instead re-routed growth and profits to Maamigili. The source suggested that individuals close to former president Maumoon Abdul Gayoom were then in a position to “benefit significantly” from the plan.

“The opposition does not like that the current government is keeping the business in Male’,” said the source.

DQP plans to distribute 20,000 copies of the book.

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Nasheed installs solar panels on President’s Office

The government has begun installing solar panels on the rooftops of public buildings in Male’, under the Japanese government-sponsored ‘Project for Clean Energy Promotion in Male’.

This morning President Mohamed Nasheed clambered onto the roof of the President’s office to bolt down and wire up a panel, 20 kilowatts worth of which have already been installed all over the building.

The project’s 395 kilowatts of panels will ultimately cut down the fossil fuel usage of installed buildings and ultimately energy bills by 30 percent, under the State Electric Company (STELCO)’s new feed-in tariff.

Speaking during the ceremony to launch the project, Nasheed said a transition away from fossil fuels would increase the energy efficiency of the Maldives by 20-30 percent by the end of 2013.

Nasheed has previously installed 48 solar panels on the roof of his residence, Muleeage, provided gratis by LG Electronics Califorian company Sungevity. Those panels generate 11.5 kilowatts of peak output, enough to power almost 200 standard 60 watt light bulbs, and will save the country US$300,000 over the life of the system.

Minivan News understands that the government is currently revising the draft feed-in tariff – which is currently operative – to make it attractive to companies willing to invest the upfront costs of powering remote islands with solar electricity.

The government has endorsed solar as the best renewable option for reaching its goal of becoming carbon neutral by 2020, a goal that has broadened from one of environmental concern to an economic imperative.

Last year the Maldives spent 16 percent of its GDP on fossil fuels, making the country extremely vulnerable to even the tiniest oil price fluctuations and adding an economic imperative to renewable energy adoption.

Data collected by the President’s Energy Advisor, former mining engineer Mike Mason, shows that it presently costs between 28-29 cents to produce a kilowatt hour in the Maldives at best, and 77 cents per kilowatt hour at worst.

“Anything beyond 28-29 cents for a big island and 32-33 cents for a small island is just money being burned,” Mason said during the recent Slow Life Symposium held at the upmarket Soneva Fushi resort.

The cost of providing solar electricity straight from the panel was far below the cost of using diesel on any island, including Male’, Mason explained.

Mason collected data on energy usage from the island of Maalhos in Baa Atoll, and found that by pointing the solar panel in the same direction all day, “you can meet midday demand easily. But between 6-11 am in the morning, and after 2pm in the afternoon, you still need to meet the cooling load of fridges and air-conditioners.”

Mason had two suggestions – the first was to use (more expensive) tracking solar panels that would follow the sun and extend the daytime period in which demand could be met using solar. This would also generate the maximum yield from each panel, mitigating another problem – space.

“The challenge will be getting tracking to work in a hot, humid, salty environment,” he acknowledged, particularly if the panels were mounted in shallow lagoons.

The cost of providing electricity from solar in conjunction with current commercially available battery technology was not much different from existing diesel arrangements on many islands, Mason observed. “You lose 20 percent of the electricity putting it in and taking it back out, and it is expensive to fix. It’s not good enough.”

However on Maalhos, Mason noted, 28 percent of the electricity demand was for cooling.

“I had a think about storage. We could use really cold water refrigerated during the day, and use that to drive air-conditioning and fridges at night. This applies as much to resorts as it does home islands.”

This innovation would drop the cost to the level of the country’s most efficient diesel generators, Mason explained. For those powerplants currently running at 77 cents a kilowatt, “this is an opportunity to print money – and there aren’t many of those available to the government.”

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Diabetics panic as Male’s insulin supply dries up

Diabetic patients taking regular ‘Human Mixtard’ insulin injections have been on a panicked hunt around the pharmacies for almost a week, due to the sudden shortage in supply, Minivan News has learned.

Human Mixtard is the most commonly prescribed insulin to diabetic patients, which number approximately 16,000 nation-wide.

Dr Ahmed Razee, an internist with special interest in diabetes and kidney diseases, told Minivan News that many patients are complaining that they have been unable to get the insulin from pharmacies.

“I’m prescribing insulin for roughly 20 patients. I’m just one physician. There are an estimated 16,000 diabetics, and about two percent of them require insulin,” he said.

According to the State Trading Organisation (STO), which is the major drugs importer and supplier, the drug supply is dry because of a “registration problem” with Maldives Food and Drug Authority (MFDA), which approves and monitors the medical drugs supply.

“There is a registration problem with the drug. We are discussing with the authority to resolve the issue,” STO Managing Director Shahid Ali told Minivan News on Sunday.

Shahid explained that all drugs have to be registered and approved by the MFDA before being released on the market. He added that an existing Mixtard stock is being held in reserve, and will be released to the pharmacies as soon as the registration problem is cleared.

MFDA was not responding at the time of press.

Minivan News could not get an official comment from the second largest drug importer, ADK Pharmacy, as well.

Posing as a customer, Minivan News called the main ADK pharmacy and was told that “insulin stock is out in all ADK pharmacies” and that “new stock will arrive next week”.

CEO of the Diabetic Society of Maldives (DSM) NGO, Aishath Shiruhana, said she was unaware of the shortage but that two people had called her requesting insulin.

Shiruhana said news of the Human Mixard shortage was upsetting as it was needed for the survival of diabetic patients.

However, she said DSM has an insulin stock and will continue to provide free injections to children registered at the NGO.

Meanwhile, a proposal to allow doctors to provide medication directly from health centres, bypassing the prescription process, is currently under review.

State Health Minister Ibrahim Waheed announced last week that the proposal is being discussed with health corporations and those prescriptions could be ruled out by next June at the earliest.

He further suggested that a large pharmacy would be established in every atoll hospital, and would supply products to other health centers across the atolls.

Generic drug-based systems which include hospital-centred distribution are common practice in other countries, sources say.

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Falcon Energy consortium promises legal action against government over Gaafaru wind farm

Local newspaper Haveeru has published an interview with the purported managing director of the Falcon Energy Consortium, Steven David Jones, who told the paper the group would take legal action against the government’s termination of a US$370 million (Rf5.7 billion) memorandum of understanding (MoU) to develop a wind farm at Gaafaru, in North Male’ Atoll.

According to an email interview between Haveeru News and Jones’ Maldivian business partner, Falcon Energy claimed that it was not informed of the termination and had meanwhile invested nearly US$1 million (Rf15 million) in meteorological masts and initial readings.

The government has disputed the existence of a legally-binding contract since media reports of the termination were published in August. Maldives’ State Electric Company (STELCO)’s Managing Director Dr Mohamed Zaid had previously told Minivan News that no private partnership agreement had been signed with General Electric (GE) and Falcon Energy.

In 2010 STELCO signed a Memorandum of Understanding (MoU) on behalf of the government with Falcon Energy and GE. But according to Jones, STELCO then agreed to amend its supposed agreement with Falcon to reflect the extra cost of laying an underwater cable, a feature not previously included in the MoU.

After concerns were raised by the public over Falcon’s legitimacy, the MoU was terminated and the Gaafaru project cancelled.

Minivan News was told that reasons for the termination included a lack of consensus between the parties involved, and whether they had the requisite experience: “Falcon didn’t work out,” said one informed source, while “a lot of things were not carried out according to the memorandum of understanding,” said another. Local newspaper Haveeru meanwhile reported that there were concerns about pricing and profitability of the enterprise.

STELCO proceeded with an open tender for another project which led to the current deal with Chinese company XEMC.

Jones, however, told Haveeru that it was a “big shock” when the Maldivian government signed the deal with XEMC this August.

Minivan News could not obtain contact information for Jones at time of press, and was also unable to find any mention of an individual by that name in connection with a Falcon Energy group.

Haveeru’s Editor Moosa Latheef said the paper had solicited the interview, but did not have a phone number and was not willing to provide Jones’ email address.

Falcon Energy itself holds a scattered track record. The Group was originally presented as a consortium of four companies from the UK, Holland and Saudi Arabia. In media reports on the deal, the President’s Office said it understood that Falcon’s credentials included commissioned “onshore and offshore wind farms totaling 1,500 MW over the past 10 years, in the UK, Spain, Portugal, Ireland and Canada.”

International media and the renewable energy trade press widely reported that the Falcon Energy involved in the Gaafaru project was the Singapore-listed Falcon Energy Group, a major offshore oil and gas player. However that Falcon Energy bluntly denied any knowledge of the project when contacted by Minivan News following the collapse of the deal.

Falcon Energy earlier claimed that funding for the project would be provided by international bank loans. Yet at the time of signing the MoU, Falcon had still to raise the required investment with international banks. Research and observations from readers led Minivan News to find that the consortium had only a minimal web presence, which appear to no longer exist.

Furthermore, Falcon’s assessment of wind power in Gaafaru did not correspond with existing scientific studies on the matter.

In an article published in April 2010, Minivan News reported that figures published in a 2003 report by the US National Renewable Energy Laboratory (NREL) indicated that North Malé Atoll’s annual average wind speed was merely 4.9 m/s (17.7 km/h), while a utility-scale wind power plant requires at least 6 m/s (21.6 km/h), according to a 2005 report by the American Wind Energy Association (AWEA).

The report cautioned that a difference of just 1 km/h in wind speed could significantly bring down the productivity of a wind farm.

However, Falcon/GE project’s local leader Umar Manik told Minivan News at the time that engineering advances would enable the Gaafaru wind farm to run on a minimum wind speed of 5.7 m/s.

The utility of wind in the Maldives remains an open debate.

“Wind is an option, with other renewable energies,” said Assistant Director of Energy at the Environmental Ministry, Ahmed Ali. “The north has been found to be most productive area for wind turbines, but studies of met masts installed in the South, in Addu, are showing that it is feasible there as well.”

Meanwhile, an article published in the Telegraph critiqued the Maldives’ goal of achieving carbon neutrality via wind and solar power as expensive and difficult, particularly because the wind “scarcely blows in the islands for months on end.”

“What do you do in the eight months without enough wind?” asked President Nasheed’s Energy Advisor Mike Mason at Soneva Fushi’s Slow Life Eco Symposium earlier this year.

“What you do is put up solar. In that case, why bother to put up wind at all? With solar the sun rises every day – it is wonderfully predictable.”

Minivan News was unable to reach officials in the President’s Office, Economic Development Ministry, STELCO and any traceable affiliate of the Falcon Energy Consortium for comment at time of press.

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Maldives a proud part of ICC: Ghafoor

The Maldivian government has said it supports the mandates and standards of human rights and legal processes held by the International Criminal Court (ICC) in conjunction with the United Nations Charter.

Gender violence and social unrest were among the issues raised during the session.

Permanent Representative Ghafoor Mohamed addressed the Tenth Session of the Assembly of State Parties to the ICC last week. The session began in New York City on December 12 and will conclude on December 21.

Reaffirming the Maldives’ commitment to the Rome Statue, Ghafoor said the country is “proud to be among the group of countries who have committed themselves to combat impunity, in respect of international law and to provide justice to those victims who have often been forgotten in the labyrinths of diplomacy.

“We strongly believe that the rule of law in societies, at all levels is a crucial ingredient to the realization of socio economic objectives, and a reinforcement of core democratic principles. We are a strong supporter of the International Criminal Court and its conformity with the United Nations Charter in strengthening the rule of law and the respect for human rights”, he stated.

Reflecting on the protests and revolutions unfolding in the Middle East and North Africa, Ghafoor pushed for governments to carefully consider their peoples’ voices and visions for their states.

The Maldives demonstrated its commitment to democracy during the Arab Spring and recently over the Syrian revolution.

The Maldives was one of the first three countries to recognise Libya’s National Transitional Council (NTC) as Libya’s sole legitimate representative. In a letter sent to chief Mustafa Abdul Jalil, expressed the President’s hope that Libya would “emerge as a free and democratic country, in which fundamental human rights can be enjoyed by all.”

Earlier this month, the Maldives exercised its powers as a member of the United Nations’ Human Rights Council to help convene a UN Emergency Session on human rights in Syria. The Maldives supports increased foreign intervention regarding the state crackdown on civilian protestors.

However, Maldivian police have lately extended controversial blogger Ismail ‘Hilath’ Rasheed’s detention over his role in a peaceful silent protest for religious tolerance without charges.

On the other hand, religious Adhaalath party has agreed to meet with ruling Maldivian Democratic Party (MDP) to discuss issues surrounding the upcoming protest to defend Islam, scheduled for December 23. MDP is meanwhile planning to hold a counter-rally on the same day.

Gender crimes were also raised as an issue of high importance.

“Gender crimes are one of most heinous forms of crimes against humanity and it is imperative that the Court continues its case law and jurisprudential work,” Ghafoor said.

A related topic was recently raised in the Maldives when UN Human Rights High Commissioner Navi Pillay called for a moratorium on flogging of women as a punishment for extra-marital intercourse. The punishment is primarily administered to females in the Maldives, where paternity tests are unavailable.

Minister of Foreign Affairs Ahmed Naseem rejected Pillay’s view on the grounds that Islamic law is inarguable.

This is the first time the Maldives has participated in an Assembly of State Parties to the ICC since acceding to the Rome Statue earlier this year. Other new members include the Philippines, Cape Verde and Vanuatu.

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First military wedding to be held at Kalhuthuhkalaa Koshi

Lieutenant Ahmed Waheed will today become the first serviceman to have a military wedding under the Maldives National Defence Force (MNDF). The event will take place this evening at Kalhuthuhkalaa Koshi.

The bride’s name has not been disclosed.

First Lieutenant Abdulla Ali said devising and getting approval for military weddings has been a long time coming, but is pleased that servicemen can now appreciate something commonly provided by national forces around the world.

“The main difference between a military wedding and a normal wedding in the Maldives the honor guard,” Ali said. “The couple will have a ceremony in the court, and then will be received by an honor guard for a reception. There will be a bugle call, and then the couple will pass by a sword team and request permission from the guards. It will be a formal and official event.”

Military weddings are not restricted to certain ranks, reports Haveeru.

Ceremony costs, however, are the responsibility of the serviceman.

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Adhaalath welcomes talks: Shaheem

Adhaalath Party chief spokesperson Mohamed Shaheem Ali Saaed today said the party would accept government requests for talks over “Defend Islam” protest planned for next Friday, December 23.

Shaheem claimed that the government’s lack interest in a dialogue has created negative tension around the protest, Haveeru reports.

“Adhaalath Party will always accept any requests made by the head of state to discuss a state affair. But the government has so far failed to hold such discussions and the failure of this forced the coalition partners of the ruling MDP [Maldivian Democratic Party] to abandon it,” Shaheem was quoted as saying.

Shaheem further said the protest aims to peacefully prevent the arrival of religions other than Islam in the Maldives, and not to invite the Shari’ah-based penalties of stoning, hand cutting and execution.

Ruling Maldivian Democratic Party (MDP) this week announced plans to hold a counter-demonstration on December 23 against what appeared to be aggressive requests from Adhaalath at the time.

Human Rights Commission of the Maldives (HRCM) is currently attempting a peaceful resolution of the dispute, reports Haveeru.

“We are concerned about losing the peace and harmony in the country. We are negotiating with the organisers of the religious protest and those who are planning to demonstrate against them,” commissioner Mariyam Azra told the local media.

The outcome of HRCM’s negotiations are expected to be released on Monday.

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