Advertisement
Economic Minister Saeed responds to questions in Parliament on Tuesday, 12 December 2023. Photo/Majlis

Qatari MoU to explore Ihavandhippolhu port deal, Saeed says

Saeed said that they had signed the partnership to see if the Qatari company that signed the bunkering service could provide it.

12 December 2023

By Mohamed Muzayyin Nazim

Economic minister Mohammed Saeed has said that President Mohamed Muizzu's government intends to establish a transshipment port in Ihavandhipolhu and L. Gaadhoo as well. The minister said the previous government's MoU to set up bunkering facilities at Ihavandhippolhu was to explore how a partnership could be made with the Qatari company in this regard and was not meant to develop it.

Saeed was responding to questions from MDP members in Parliament on Tuesday asking what this government's views are on the Ihavandhippolhu port project.

Hoarafushi MP and Deputy Speaker of Parliament Ahmed Saleem (Salle) questioned the minister on Tuesday:

  • Since the northernmost part of the maldives is an area where a large number of cargo boats cross the channel every day, the previous government has signed an agreement with Qatar's Urban Trading and Contracting Company to start the bunkering service, including oil refuelling, until a transshipment port is developed in Ihavandhippolhu.

  • Did this government stop the works and the port works that the previous government decided to develop in Ihavandhippolhu

  • What is the current plan for the project?

Replying to the two questions, Minister Saeed said the agreement signed by STO with the Qatari company remains intact. "No work has been stopped," he said.

"The government has not yet decided on how to proceed with the project. I am informed that the MOU is active," he said.

"As the minister, we have not yet decided. We are continuing to review many such things [of the previous government]. Since the MOU is between two companies, I hope the companies will decide on it”.

With the answer, Saleem said he "became more confused about the information he wanted to clarify”. He reiterated, asking if there was no policy of this government to establish bunkering and logistics services in the area until a port was built as decided by the previous government.

“The minister should know that the Ministry of Economic Affairs sets the policy on such matters, even if a company signs an MOU,” Saleem said.

When asked if there was no government policy to start the service in the area soon, Saeed said:

  • The government's intention is to continue bunkering services and other services for ships sailing in the northern region, as an investment

  • He brought up the MOU in his response because it had been mentioned in the question

"I clarified further, from the MD of STO what kind of MOU it was. He said that they had signed the partnership to see if the Qatari company that signed the bunkering service could provide it," he added.

President Muizzu promised during his presidential campaign to start bunkering services in L. Gaadhoo. It is also included in the government's 'Week-14' or first 100 days promises. The MDP members alleged that the bunkering service to be established in Ihavandhippolhu was being moved to Gaadhoo.

Responding to the allegations, Saeed said:

  • The port to be built in Ihavandhippolhu will not be changed to the Laamu atoll; President Muizzu's promise is to develop the port in Ihavandhippolhu, as well as Laamu atoll 

"They are two channels. Both areas are important areas... No project to be built in Ihavandhippolhu will be transferred to Laamu Atoll," Saeed, who was the Member of Parliament for L. Maavashu Constituency until November 17, said.

Asked whether this government was trying to determine which of the two areas would be prioritised, Saeed said, “Our priority is to carry out [the project] in both areas.”

A naturally unique island, Gaadhoo was declared a protected area in December 2021 by the then President Ibrahim Mohamed Solih's government. Some environmentalists expressed concern over the decision to build a port on the government's Week-14 agenda.

When asked about the matter, Saeed said the port would be established after considering environmental issues.

"Any work can be done in an area after an environmental impact assessment. And no rules or regulations made to protect the environment will be violated”.

Replying to questions raised by members regarding the construction of the transshipment port, Saeed said that the port will be built in the north and Laamu. There could be talk of building a transshipment port, but when it is built, "transhippable cargo" should also be able to come to the area.

"Studies conducted over the last 10 years have shown that what is important is acquiring the cargo to be transshiped first. Whether the situation is there or not will be reviewed many times by the investor who comes to it," said Saeed, who was also the economy minister in former President Abdulla Yameen Abdul Gayoom's government.

Speaking about the challenges in doing this, Saeed said, “Regional competition” is the biggest challenge. Finding the funds to do so is also a challenge, he said.

"Many technicians believe that it cannot be done without transshippable goods. The debate is coming up in different ways [in different governments]. Whether it is a transshipment port; a bunkering or a commercial port; an exit port," Saeed said.

Once the investor decides on it, no government will interfere with that coming development, he said.

Comments

profile-image-placeholder