The government is reviewing the agreement signed to launch a bunkering project at Ihavandhippolhu for refuelling and servicing foreign cargo ships, Economic Development Minister Mohamed Saeed said at Parliament today.
Responding to a question by an MP about the project awarded to Qatar's UrbaCon Trading & Contracting Company, Saeed said the agreement was signed by the State Trading Organization (STO), which was now in the process of reviewing the deal.
"The project hasn't been stopped. It wasn't our ministry that signed it. It was STO that signed it. I checked to see whether the agreement was active. They informed that it is active," the minister said.
Despite the review, a decision has not been made to terminate the agreement, Saeed said. He did not state reasons for the decision to review the agreement.
After signing the agreement, STO said previously that the northernmost atoll of Ihavandhippolhu lies on the main shipping lane for financial transactions between east and west in the Indian Ocean.
As more than 300 large cargo boats pass through the lane every day, STO characterized the project as crucial for the country's development.
STO signed the agreement with Qatar's UrbaCon Trading & Contracting Company in August this year to begin refuelling services for large cargo ships that pass through the Ihavandhippolhu region.
The previous government planned to carry out the bunkering project as part of a port city development project in Ihavandhippolhu, which is the northernmost natural atoll in the Maldives with the islands of Thuraakunu, Uligan, Hoarafushi, Ihavandhoo and Molhadhoo.
According to STO, the MoU signed with UrbaCon includes conducting feasibility studies for beginning international bunkering services and building a national strategic petroleum reserve in the port city in addition to implementing the project.
