Indian companies will be expelled, Muizzu warns

Sep 5, 2023, 6:34 AM
Mohamed Muizzu.

Mohamed Muizzu.

People's National Congress (PNC) presidential candidate Dr. Mohamed Muizzu has threatened to stop Indian companies from carrying out projects in the Maldives.

Speaking during a campaign rally in Alif Dhaal Mahibadhoo on Monday night, Muizzu warned to kick out Indian companies in the same way that India's GMR Group was expelled.

There are concerns that projects being implemented by Indian companies threatened the country’s independence, the Male' Mayor and former housing minister claimed.

If such a claim was proven, agreements would be reviewed and canceled in his government, said the candidate endorsed by the largest opposition Progressive Party of Maldives (PPM).

He listed Thila-Male' bridge project, Uthuru Thilafalhu project, Hanimaadhoo airport project and projects in Addu city.

“If you look at any of these projects, for example, the Uthuru Thilafalhu project or any other project, if it is an obstacle to the independence of the country, we will cancel the projects in the same way that GMR was expelled,” Muizzu said.

But he promised to re-award the projects to different companies and fast-track the work.

His comments came less than 24 hours after Foreign Minister Abdulla Shahid said that Muizzu would stop the Hanimaadhoo International Airport project if he won the September 9 election.

Speaking during a campaign rally in Haa Dhaal Makunudhoo on Sunday night, Shahid said around 1.5 million tourists are expected to arrive at Hanimadhoo airport annually when the expansion project is complete.

He said it would bring direct benefits to all the islands in that region including Makunudhoo. Shahid noted that the biggest concern is that the opposition candidate could stop the project if he comes to power.

"The opposition candidate's plan does not include the continuation of Hanimaadhoo airport project. We are getting information about it," the foreign minister claimed.

The contract for developing the then-Ibrahim Nasir International Airport, in Hulhule' was agreed upon with India's GMR in 2010 during the government of former President Mohamed Nasheed.

Nasheed resigned in a coup following a mutiny by the police and soldiers in February 2012. His deputy Dr. Mohamed Waheed took over and cancelled the agreement with GMR which later went to arbitration in Singapore.

Maldives won the court case allowing it to cancel the USD 511 million airport development contract and clearing the way to take over the main airport now named Velana International Airport.

GMR filed for damages and the court ruled that the Maldives should pay USD 270 million (MVR 3.8 billion) in compensation for the termination of the agreement. The compensation was paid during the government of former President Abdulla Yameen who is the current opposition leader serving a prison term for bribery.

The current government of President Ibrahim Mohamed Solih describes the termination of the agreement with GMR as the biggest setback for the Maldives economy.

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