Uthuru Thilafalhu project awarded to Indian company
Project awarded to Indian firm for $186.3 million (MVR 2.9 billion)
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By
Ahmed Naaif
The Indian government has assigned the controversial development of a military port in Uthuru Thilafalhu (UTF) of Maldives to the state run firm of Rail Vikas Nigam (RVNL), the Indian media had reported on Wednesday.
According per the media reports, RVNL was awarded the port development project by Ministry of External Affairs (MEA) of India. The total agreed cost of this project is $186.3 million (MVR 2.9 billion) and the agreed timeframe for the completion of the project is 2 years from the date of signing.
The state run RVNL company was established in 2003 to undertake projects in the Indian Railway Network. And to date the company has only carried out railway related projects which include construction of railway lines, tunnels and railway bridges. Thus this will be first time the company will be carrying out a port project.
While many administrations have held talks with various foreign governments to develop North Thilafalalhu as a coast guard port and a dockyard, the Defence Ministry signed an agreement with India on February 21, 2021.
Under this agreement:
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India is set to provide a $50 million loan for development of North Thilafalalhu.
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Phase 1 of UTF development will consist of a special port for Coast Guard.
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UTF will be developed and managed jointly by the Maldivian and Indian Armed Forces.
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The agreement is set to expire in 15 years with the possibility of extensions.
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Foreign ships will not be allowed to enter the port without India's permission.
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Maldivian Government refused to divulge too many details of the agreement claiming national security interests.
Opposition parties have raised concerns over the UTF deal accusing that it was meant to set up an Indian military base in the Maldives. These concerns also alleges that under this agreement, Indian troops would be stationed in North Thilafalhu.
However the Maldivian National Defence force has denied these allegations stating that:
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Under the UTF agreement the Indians staying at North Thilafalhu would be people of skills and not armed soldiers.
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No military work would be done by these individuals except for the port development works and and providing technical assistance to Maldivian forces.
