Maldives govt says Afcons sale will not affect local projects
Parent firm Shapoorji Pallonji Group is looking sell Afcons Infrastructure Limited, which has been awarded major projects in the Maldives.
Contracts signed with Afcons Infrastructure Limited will continue despite a sale of the Indian infrastructure giant by its parent company, Maldivian government said Thursday.
Parent firm Shapoorji Pallonji Group is looking sell Afcons Infrastructure Limited, which has been awarded major projects in the Maldives funded through Indian loans, Indian media reported Tuesday.
Several Indian media outlets as well as Bloomberg quoted people familiar with the matter as saying that Shapoorji Pallonji Group, controlled by billionaire Shapoor Mistry, is weighing asset sales including a controlling stake in its flagship engineering firm that could raise about $2 billion.
Asked by reporters during his weekly press briefing at the President's Office, presidential spokesperson Miuvan Mohamed said the sale of Afcons would not stop the company's ongoing projects.
"It's a regular practice by major holding companies to sell or buy subsidiaries or their assets," he said.
Citing Maldives-based Trans Maldivian Airways (TMA), which is the world's largest seaplane operator, as an example, Miuvan said the company had also been sold several times, but the company had grown further without affecting operations.
"Afcons' parent company's decision to sell Afcons to another party will not hinder its works," Miuvan said.
"There is an agreement between the company and the Maldivian government. Our work with the company will continue and there will be no disruption."
Former economic minister Mohamed Saeed said on Wednesday that the Thilamale bridge will not be built and this will be the biggest disaster for Maldivians in recent times.
Afcons has been contracted to develop Greater Male Connectivity Bridge, the biggest infrastructure projects undertaken by the incumbent Maldivian government. It is part of a loan of MVR 8.2 billion extended by by Exim Bank of India.
The MVR 1.1 billion Addu road construction project is also undertaken by Afcons.
There have been several complaints over the slow speed and low quality of Afcons projects in the Maldives.
