Tag: singapore

Details of President’s trips to Singapore a public right, says Nasheed

Opposition Maldivian Democratic Party (MDP) leader and former President Mohamed Nasheed has stated that Maldivian citizens have the right to information regarding President Abdulla Yameen’s frequent trips abroad.

In a statement, followed by a tweet in Dhivehi regarding the issue, Nasheed stated that under the Information Act the public has the right to know details of all Yameen’s expenses.

“Revealing information regarding the expenses of the president from funds raised by public taxation is something that must be done in a transparent, democratic society,” said the MDP party president.

Responding to the statement, President’s Office spokesman Ibrahim Muaz told Minivan News that the president’s health was not an issue.

“You can see him actively working day and night. He is in good health, Alhamdulillahi,” said Muaz.

He added that the government does not believe that the details about such trips have to be made public.

“Details of president’s personal trips do not have to revealed, nowhere in the world does that happen,” said Muaz.

Further, he assured that the government will uphold the spirit of the Information Act and would  therefore welcome any information sought within the boundaries of the act, “even if president Nasheed’s travel expenses and information on how many foreigners he employed, paid by the state, was requested”.

In his statement today, Nasheed said that during MDP’s tenure details of all government expenses were revealed by the Ministry of Finance and Treasury on a systematic basis, noting that the practice has been put to an end after the new government stepped in.

In a letter to Vice President Dr Mohamed Jameel Ahmed yesterday (January 11), MDP Deputy Chairperson Ali Shiyam asked the President’s Office to make public details of the number of official and unofficial visits Yameen had undertaken to Singapore since he assumed office in November 2013.

The MDP also asked for details on the number of days Yameen spent in Singapore, the number of individuals who accompanied him, the amount of money spent from the state budget, and details of the president’s health.

Yameen has travelled to Singapore at least five times between July 29 and the end of November last year. This includes two stop-overs in Singapore – one in August and one in November – on the way to China and Nepal, respectively.

Nasheed first raised concerns over the president’s health in October.

During Malé’s water crisis in December, the MDP passed a resolution claiming the government had failed to perform its duties and declaring support for Jumhooree Party leader Gasim Ibrahim to assume power.

Yameen had been in Singapore, but cut short his unofficial trip and returned to Malé as the water crisis continued. The capital’s 130,000 residents had been left without running water due to a fire at the water plant.

Article 123 of the Constitution states that if the president believes himself temporarily unable to perform the duties and responsibilities of office, he should inform the speaker of the People’s Majlis in writing and handover duties and responsibilities to the vice president.


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President Yameen takes another trip to Singapore

President Abdulla Yameen and first lady Fathimath Ibrahim left for Singapore last night (January 7).

According to the President’s Office website this is a personal trip. The website did not specify when the president would return to the Maldives, though Minivan News understands he will come back on Sunday (January 11).

Yameen has travelled to Singapore at least five times between July 29 and the end of November last year. This includes two stop-overs in Singapore – one in August and one in November – on the way to China and Nepal, respectively.

The opposition Maldivian Democratic Party has raised questions over the president’s health and has on numerous occasions called on him to reveal to the public the reasons behind his numerous personal trips to Singapore. The President’s Office has denied such speculation regarding Yameen’s health.

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Changi signs consultancy deal as MACL aims for 9.6 million passengers

Singapore’s Changi Airport International has today signed a deal to provide consultancy services for the renewal and expansion of Malé international airport.

During a ceremony held this morning Maldives Airport Company Ltd (MACL) Managing Director Ibrahim ‘Bandu’ Saleem revealed that the new masterplan envisioned 9.6 million passengers using the airport by 2030.

Saleem questioned why “not much has been done for the development of Malé international airport”, saying that financial arrangements with China’s Exim Bank were in place, with work expected to start early next year.

A previous concession agreement with India’s GMR for the management and operation of the airport was terminated in late 2012, with the company winning its arbitration case against the Government of Maldives in June this year.

Political opposition to the GMR deal focused on nationalist sentiment, and President Abdulla Yameen has emphasised the importance of retaining government control over Ibrahim Nasir International Airport (INIA).

Both Changi CEO Lim Liang Song and Minister of Tourism Ahmed Adeeb spoke today of the strong emotional symbolism of the airport.

“As we know, our airport is very much emotionally attached – it’s not only an airport, but an airport that was built by Maldivian people and it is in their sentiments and it is President Yameen’s vision to develop the airport by the government of Maldives and to keep its operation under the government of Maldives,” said Adeeb.

Song compared this sentiment with Singaporean’s feelings towards Changi International Airport, noting that this would be kept in mind as the group.

“At the end of this, we are the consultants. We will give you best advice on practices on processes – the airport has to be moved by the emotions, the vision, of the government as well as MACL,” he explained.

During today’s signing ceremony, Adeeb discussed the government’s vision for the airport, noting that infrastructure would have to be complemented by enhanced human resources in order to provide an international class facility.

“We look forward to opening a brand new, luxurious, airport where the high end tourists would like to spend their time and have that luxurious feeling – a feeling that they are in an airport in the most beautiful destination in the world.”

Adeeb has previously explained that Changi, which manages Singapore’s multiple award-winning Changi airport, would be hired as consultants as they are better qualified to work with Chinese and Japanese contractors.

Following GMR’s renovations to the current international terminal in 2012 – part of the country’s largest foreign investment deal – the project became overwhelmed by political opposition, leaving the foundations of a new terminal to rust on newly reclaimed land.

After arbitration proceedings found the agreement to have been valid and binding, GMR have recently revealed they are seeking US$803 million for damages and loss of reputation – a figure equivalent to around two thirds of next year’s forecast state revenue.

With the court yet to conclude on the amount owed by the Government of Maldives, GMR were reported to have expressed surprise when a preliminary agreement was signed with Beijing Urban Construction Group (BUCG) to upgrade INIA.

2013 saw over 1.3 million tourists land at INIA – around one third of which were Chinese.

MACL’s Bandu Saleem noted today that the government also had plans to expand regional airports – of which there are currently ten – with plans to develop an airport in Raa Atoll.

Correction: this article previously incorrectly stated MACL had signed an agreement with Changi Airport Group. MACL signed an agreement with Changi Airports International.


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Singapore Islamic authority approve Maldives halal certificates

Singapore has become the first country to accept the Maldives’ Halal certification, the Ministry of Islamic Affair has revealed.

Local media have reported the ministry’s announcement that the Islamic Religious Council of Singapore has accepted the certification, currently used by three Maldivian fisheries firms.

“After the approval of the certificate by Singapore, the market is looking forward to an even bigger expansion,” Islamic Minister Sheikh Mohamed Shaheem Ali Saeed told Haveeru.

The move to award Halal certification followed the EU’s decision to refuse the extension of duty-free status to Maldivian fish imports late last year due to the Maldives’ failure to adhere to international standards regarding freedom of religion.

The EU represents the single largest export partner for the Maldives.

The government promptly formed a Fisheries Promotion Board in order to target new markets, with Felivaru Fisheries, Maldives Industrial Fisheries Company (MIFCO), Horizon Fisheries all awarded Halal certificates in April.

Deputy Minister at the Ministry of Islamic Affairs Dr Aishath Muneeza told Sun Online that the certification had been approved for three years by the Singapore authority, expressing confidence that the development would open up international markets.

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Settling disputes – The Weekly Review

June 14th – 20th

The government’s legal and political tussles grabbed headlines this week, with past, present, and future disputes all making the news.

This week’s biggest story came courtesy of spurned Indian infrastructure giant GMR, who revealed a Singapore arbitration court had deemed their terminated airport development deal “valid and binding”.

Being requested to pay US$4 million in procedural costs while the court determines the amount owed to GMR, the government interpreted the outcome as a success, predicting that the damages owed would be far less than the US$1.4 billion sought.

After the issue of a warrant to enforce the appearance of Home Minister Umar Naseer at his disobedience to order trial, the minister appeared at the Criminal Court of his own volition upon his return from his official trip to Europe.

Naseer promptly refused to cooperate with the trial until his procedural objection – already rejected by the judge – had been appealed.

The government’s disputes in the political arena also continued this week, with ejected coalition partner, the Jumhooree Party (JP), striking a conciliatory tone after the recent break-up.

The JP maintained that the coalition agreement had not been breached, while the party continued to haemorrhage members to its former ally the Progressive Party of Maldives – the economic development minister and two more MPs being the latest to switch allegiance.

The Progressive Coalition’s fast-growing majority in the Majlis resulted in what the Maldivian Democratic Party (MDP) interpreted as excessive representation in the Majlis’ standing committees, leading to the cancellation of sittings and threat of street action.

While taking pains to distance his party from such maneouvres, MDP leader Mohamed Nasheed suggested President Abdulla Yameen’s fate would likely be the same as his – predicting his eventual removal in a future coup.

Brigadier General Ahmed Nilam this week submitted a case to the Human Rights Commision, suggesting his suspension and subsequent dismissal were linked to the events of Nasheed’s chaotic departure from office in February 2012.

The second UNDP Human Development Index report raised questions as to how equitably economic growth was being distributed, with research revealing glaring disparities opening up between progress in the capital and the atolls.

Phase two of expansion of Malé’s suburbs continued regardless, with a US$50 million dredging contract awarded to a Belgian company for phase two of the Hulhumalé expansion project.

Despite expressing continued reservations about the Maldives’ public account imbalances, the World Bank this week anticipated continued development of the economy with 4.5 percent GDP growth predicted.

Meanwhile, Hope for Women this week predicted unwelcome growth in the workload of female civil servants during Ramadan after the alteration of working hours for the month of fasting.

The World Cup in Brazil – for which the government has already allowed extended trading hours – was suggested as a possible reason for the adjusted working times, though the President’s Office maintained that the change was intended to facilitate late night prayers.

This week also saw the Islamic Ministry hold a closed conference with scholars to discuss reports of Maldivian jihadis journeying to Syria, while Foreign Minister Dunya Maumoon called on the Umma to assess the persistent association with terrorism and intolerance.

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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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Oil exploration attracts investors at Singapore investment forum

The Maldives has garnered interest in oil exploration during an investment forum in Singapore.

Minister of Fisheries and Agriculture, Dr. Mohamed Shainee, told Minivan News at least one investor will be visiting the Maldives in the coming weeks to present their company profile and discuss the project further.

Over 160 companies and nearly 200 representatives from 16 countries were present at the first overseas investor forum organised by the Maldives.

Speaking at the event on Friday, Shainee assured potential investors that there was no room to refute the presence of oil in the Maldives based on seismic testing by Royal Dutch Shell.

“Those studies were carried out 25 to 27 years ago, with limited technology capable of investigating under sea. However, now we have better technology that is more capable of more exploration,” he said.

Oil has been found in both Sri Lanka and India and therefore there is a high possibility that it will be found in Maldives too, he added.

Lying just a meter above sea level, the Maldives is among the world’s most vulnerable countries to climate change impacts such as sea level rise, ocean acidification and extreme weather events.

Crude oil will diversify and stabilise the economy, President Abdulla Yameen Abdul Gayoom has said. At present, the Maldives heavily relies on tourism, which supports an estimated 70 – 80 percent of its GDP.

However, some have argued that economic benefits will not outweigh the possible environmental repercussions.

“When you take up the issues of drilling, we are concerned about the oil container tanks with unrefined fuel passing through,” concluded Executive Director of local NGO Bluepeace Ali Rilwan. “We can’t afford to go into that dirty energy.”

With this in mind, Rilwan asked, “can we avoid a disaster in the Maldives? The Maldives is a tiny island and this can have a very negative impact, the tanks are a worrying thing.”

In addition to oil exploration, the government is seeking investment in establishing a port in northern Ihavandhippolhu Atoll, land reclamation and maritime seaport in Hulhumalé, expansion of the Ibrahim Nasir International Airport (INIA) and the relocation and expansion of the central port to Thilafushi Island.

The projects for which the government was seeking investors were “designed to position Maldives to take advantage of its strategic location as a hub and gateway for commerce, innovation and creativity, linking rest of the globe with South Asia,” President Yameen said in his keynote address.

“To address investment climate and to facilitate mega investments with attractive incentive packages, a Special Economic Zone Bill will be tabled in the parliament soon. Additionally, the Foreign Investment Act and Companies Act are being revised to cater the ever increasing needs of the modern foreign investors,” he added.

Meanwhile, a Singaporean court is currently overseeing the arbitration process between the Maldives government and Indian infrastructure giant GMR in which the company has claimed US$ 1.4 billion for the abrupt termination of a concession agreement to develop the Ibrahim Nasir International Airport (INIA).

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GMR holds to US$1.4 billion compensation figure

GMR is sticking to the US$1.4 billion compensation claim for the abrupt termination by the Maldivian government in December 2012 of a concession agreement to develop the Ibrahim Nasir International Airport (INIA).

“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).

GMR noted that the Maldivian government had acknowledged for the first time that the company was owed compensation.

Prior to departing for Singapore on Thursday, President Abdulla Yameen told the press that the government would have to pay compensation to GMR upon conclusion of the arbitration process currently underway.

Asked if he was confident the outcome of the arbitration would be favourable for the Maldives, Yameen said: “The reality we have to accept is that a government with full sovereign powers made an agreement with a foreign party and leased [the airport]. This is a government, and what preceded this was a government as well. So believe we have to pay them some kind of financial compensation. “

He added that the government’s objective in the arbitration hearings was to lower the compensation amount.

If the judges on the arbitration panel accept the government’s arguments for nationalisation or expropriation, Yameen said the compensation owed to GMR could be smaller.

“We’re going to have to provide compensation in any case,” he conceded.

The US$1.4 billion sought by GMR for “wrongful termination” exceeds the annual state budget whilst the national debt is expected to rise to MVR31 billion (US$2 billion) this year.

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

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

President Yameen also met officials of the Beijing Urban Construction Group yesterday, who “expressed their interest in engaging in the infrastructure development of the [INIA],” according to the President’s Office.

Void ab initio

In December 2012, the administration of former President Dr Mohamed Waheed voided the 25-year concession agreement with the GMR-led consortium.

The US$511 million contract awarded by his predecessor former President Mohamed Nasheed – following a bidding process overseen by the World Bank’s International Finance Corporation (IFC) – was the largest foreign direct investment in the country’s history.

Waheed’s government – of which President Yameen’s Progressive Party of Maldives was a coalition partner – declared the contract ‘void ab initio’ – invalid from the outset – and gave the company seven days to leave the country.

After GMR received a stay order for the eviction from the Singapore High Court, the government successfully appealed the injunction at the Singapore Supreme Court.

Chief Justice Sundaresh Menon declared that “the Maldives government has the power to do what it wants, including expropriating the airport.”

At a press conference in the wake of the airport takeover, Finance Minister Abdulla Jihad – who retained his post under the new administration – said that the Maldives would pay whatever compensation was required “however difficult” while Attorney General Azima Shukoor expressed hope that the compensation would be lower than anticipated.

A special audit conducted by the Auditor General’s Office in early 2013 found that as of October 31, 2012, GMR Male’ International Airport (GMIAL) had completed 25 percent of the refurbishments and upgrades to INIA planned for the end of 2014, and had been invoiced by its contractor for US$69 million.

“Significant progress had been made in some areas – for example, 87 percent of the material for land reclamation had been dredged,” the report (English) stated.

“In the meantime, all work on the ground on the improvement to the airport has ceased. Sensitive elements of the new structures that had been planned by [GMR] are incomplete and exposed to the weather and at risk of damage – possibly closing off the option of re-using these elements to reduce the cost of any future development of the airport,” the report concluded.

After examining the bidding process, the audit report stated that evidence to back allegations of “improper interference” during technical bidding process “is not conclusive on this point”, and deferred the matter to the Anti-Corruption Commission (ACC), which ruled out corruption in June 2013.

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“Yonder lies the greener pastures”: President Yameen inaugurates investor forum in Singapore

President Abdulla Yameen inaugurated the Maldives Investment Forum at Singapore’s Marina Bay Sands today with assurances to potential investors of the government’s commitment to fostering a business-friendly environment.

In his keynote address at the event, President Yameen said his administration was “cognisant of the needs of our investors and the requirements to strengthen and redefine the legal and regulatory environment governing foreign investments.”

“To address investment climate and to facilitate mega investments with attractive incentive packages, a Special Economic Zone Bill will be tabled in the parliament soon. Additionally, the Foreign Investment Act and Companies Act are being revised to cater the ever increasing needs of the modern foreign investors,” he said.

“Investment registration and facilitation has also been strengthened recently, with structuring of Invest Maldives as a one-stop shop for investment promotion, registration and facilitation.”

Over 160 companies and close to 200 representatives from 16 countries were present at the first overseas investor forum organised by the Maldives, Yameen noted, expressing gratitude for the “overwhelming support received for this forum.”

The new government has “embarked on an ambitious economic agenda to transform the economy” with the goal of becoming “a resilient, diversified high income economy in the next decade,” the president said.

He added that the government was committed to exploring “openings for increasing foreign investment flows to non-traditional sectors to lift Maldives beyond the image of a picturesque postcard.”

Yameen suggested that the success of the tourism industry over the past 40 years was due to “ingenuity, private enterprise and a liberal policy environment for foreign investments”.

Mega-projects

The projects for which the government was seeking investors were “designed to position Maldives to take advantage of its strategic location as a hub and gateway for commerce, innovation and creativity, linking rest of the globe with South Asia,” he explained.

Briefing participants on the five mega-projects envisioned by the government, Yameen said that the Ihavandhippolhu Integrated Development Project or iHavan “provides immense potential to capture substantive share of the trade and commercial opportunities in the South Indian Ocean and capture the trade flows crossing the seven degree channel.”

The government hoped to “engage private investors in the delivery of key pieces of infrastructure,” he said.

The other mega-projects or infrastructure development plans were concentrated in the Greater Male’ region, Yameen noted, which included the Hulhumale’ Youth City with further land reclamation and a maritime seaport project.

“With these investments, we foresee the region surrounding the Male’ City emerging as a vibrant commercial hub in the region,” he said.

The other mega-projects include the expansion of the Ibrahim Nasir International Airport (INIA), relocation and expansion of the central port to Thilafushi, and exploration for oil and gas.

Concluding his remarks, Yameen thanked foreign investors and senior businessmen from the Maldives for their “support and presence” at the forum, which gave the government “comfort and confidence” in its economic and trade policies.

Yameen said he hoped the forum would serve as “an avenue for enhancing understanding of the investment environment and opportunities in Maldives.”

He went on to congratulate Economic Minister Mohamed Saeed and his team for organising the forum and expressed gratitude to the key sponsors.

“Yonder lies the greener pastures,” he concluded by saying.

Yameen’s remarks were followed by presentations on the five mega-projects, a question and answer session with government ministers and speeches by Stephen Ho, President of Starwood Asia Pacific, Akhil Gupta, Chairman of Blackstone India, and William Ellwood Heinecke, CEO of Minor International.

President Yameen also launched the new Invest Maldives website at the forum this morning.

In his speech at the inauguration ceremony, Economic Development Minister Saeed revealed that the government was planning to hold a second investor forum in Shanghai, “the commercial capital of China.”

Moreover, at a press conference held at the forum, Tourism Minister Ahmed Adeeb reportedly revealed that the government has decided to lease islands for resort development for 99 years instead of the 50-year lease period at present.

Legislation will be submitted to parliament to authorise the extension, he said, which was intended to gain investor confidence.

Meanwhile, prior to departing for Singapore yesterday, President Yameen told the press that the government was certain it would have to compensate Indian infrastructure giant GMR for the premature termination of the concession agreement to develop and manage INIA.

Earlier this month, Yameen had said that the out-of-court settlement sought by GMR was too high, and that he would now await the outcome of arbitration proceedings in Singapore, which could take up to another two months.

The US$511 million contract awarded by the administration of former President Mohamed Nasheed was the single largest foreign direct investment in the Maldives’ history.

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