Qatari giant invests in realising Ihavandhippolhu dream

It is a fact known to the whole world; Ihavandhippolhu is located next to one of the busiest maritime routes in the world. According to current figures, more than 300 ships cross the route daily.

However, Maldives has never received any benefit from the sea voyages of these ships carrying goods and the expensive trade associated with them. In the last years of former President Maumoon Abdul Gayoom's rule, the construction of a transshipment port in Ihavandippolhu was included in the state budget. Plans were also made to implement a major project called I-Haven during the administration of former President Abdulla Yameen as well.

The incumbent government had also announced a project to develop a port city in Ihavandippolhu. The government's five-year term has four months left. On Thursday, there was another signing at Kurumba Maldives, but this time it’s getting a little more attention, as the contract was signed with Qatari giant UrbaCon Trading & Contracting Company (UCC).

Known as UCC in Qatar and the Arab world, the company has implemented major projects so far. UCC also designed and developed Banana Island and Lusail islands, which were dredged in Qatar.

The company designed and built the Waldorf Astoria Ithaafushi resort, one of the most famous and expensive resorts in Maldives.

UCC and STO signed an agreement to build a bunkering facility in the port city and develop facilities to increase Maldives's oil reserves. These are the two main parts of the port city.

One of the things Economic Minister Fayyaz Ismail said at Thursday's ceremony was that the launch of an international transshipment port and its benefits have been delayed.

Then he mentioned what would happen if the dream of Ihavandhippolhu became a reality.

“Our vision is to make the north of Maldives an economic hub,” Fayyaz said.

More than 300 ships a day travel north and west across Maldives without benefiting the country, which is best placed to provide the services needed by the ships.

Qatar's UCC is a capable company that can help start banking services in Maldives. However, it is not known when the dream project will become a reality.

Signing and starting practical work are two completely different things. People have little confidence in such signatures, especially in ones that pop up just before an election.

There are rumors that neighbouring India has obstructed the government's plans to build a transshipment port in Ihavandhippolhu. Yameen's government also commissioned Singapore's Surbana Jurong to draw up the masterplan. However, it could not be put into practice.

Earlier last year, PPM MP Ahmed Shiyam blamed India, in a sitting of parliament. According to him, India obstructed the I-Haven project.

"The disaster that hit the prospects of I-Haven is India. The security policy of India's foreign policy is being implemented at this point and it is preventing the development of the country," he said.

He said the government did not want any country other than India to make such a huge investment in Ihavandippolhu.

Even when he resigned, Yameen did not give many details about I-Haven. However, Yameen later said he hasn’t forgotten the project.

Ihavandhippolhu is a golden opportunity for Maldives in terms of the world's shipping business. The value of shipping-related bunkering services is estimated at USD 150 billion.

If India's policy is not to allow any major foreign investments in the region, it is difficult to say how confident the government is that the project will be carried out.

At a ceremony held at Kurumba Maldives, the birthplace of tourism, the current main industry of Maldives's economy, Fayyaz said he had reached this point after “a lot of hard work”.

The people have to wait and see what happens next. Now it's signed. With a huge company.