Miadhu News
SUNDAY, JUNE 27TH, 2010

Dhivehi Rayyithunge Party (DRP), Peoples Alliance (PA), Dhivehi Qaumee Party (DQP) and Jumhooree Party (JP) have alleged that corruption is ripe in Male International Airport privatization process and has signed an agreement to work against the privatization process.

Government’s urgency in the process at a time when there is a pending bill in the parliament floor which would regularize the process of selling public assets is troubling and a case would be lodged with the Anti-Corruption Commission, President of DQP, Dr. Hassan Saeed and President of Peoples Alliance, Abdulla Yaameen said.

Dr. Hassan Saeed also noted that the move comes at a time when the public confidence in the government is at rock-bottom.

Dr. Hassan Saeed also said that the airport shall be developed by the Maldives Airports Company and if the same provisions which the government is allowing for GMR could be allowed for Maldives Airports Company, MAC could also develop the airport.

They also noted that the USD 18 airport service charge was defined by an Act, and another act is necessary to amend the amount, although government has agreed to revise the figure for USD 25 in favour of GMR.

Yaameen also noted that the experts has noted that privatization of US airports was one reason which led to 9/11 attacks in US. Yaameen also noted that this could cause loss of revenues to companies which operate at the airport or depend on the airport, such Island Aviation Services. Yaameen also noted that subject to GMR’s fuel charges, airport tax and charges for flights landing at the airport, the tourist arrivals could also decline.

Yaameen also said that because of the financial and economic crisis, this is not the best time to sell an asset like the airport. He also noted that the in the bidding process highest marks shall not be given to the company which pays the highest amount of money upfront, but to the company which would give the highest amount of money throughout the lease period. He also noted that the previous government has leased the resorts in the same model. Yaameen also noted that government has never requested money for the airport development from the parliament.

The declaration issued by the four parties last night highlighted six main issues regarding the airport privatization.

Answering to a question raised by Miadhu Daily, Dr. Hassan Saeed said that the investor, GMR would consider the views of the people and the opposition parties before making the investment final. “Even if they sign the agreement, even if the assumes the management of the airport, we will do whatever we can to cancel the agreement. We will go to Court and I have the guarantee that we can win this case” he noted.

Ahmed Thasmeen Ali, leader of the main opposition party, said that the opposition parties may not be able to stop all missteps by the government; however, if good governance is anything to go by, the government has to consider the views of the opposition parties and the people. However, Thasmeen also noted that government is not giving such consideration to the views of the opposition.

Qasim Ibrahim, first Home Minister of this administration, said that he has spoken against airport privatization in the cabinet meetings when he was the Home Minister. He also noted that he is continuing the same struggle, on behalf of the people.

GMR-KLI consortium which won the contract to develop Male International Airport has said that it will invest USD 600 million, in addition to USD 400, which it will invest upfront.

President Mohamed Nasheed has said privatization of Malé International Airport will boost revenue and expand services and facilities at the airport.
On Thursday, Finance Minister Ali Hashim opened bids of the three short-listed parties, with India’s GMR Infrastructure Limited winning the bid. GMR, which offered US$78 million in upfront, will expand, modernize and operate Malé International Airport for 25 years.

With privatization, “government would be able to save over US$300 million in investments,” President said.
The government had launched the tender process for the airport in October 2009.
Speaking on the tender process, President said the International Financial Corporation, a member of the World Bank Group, worked with the government throughout the process. Therefore, the President added that he was “confident the tender process was transparent and ensured there was no room for corruption”.

Maldives Airports Company has said on 25 June 2010 that its profit in 2009 was MRF 257,134,010 (USD 20,010,429). The Company’s profit in 2008 was MRF 229,748,131 (USD 17,879,232), which marks a 11.92% increase in net profit in 2009.