Maldives Govt. vows to implement all deals with foreign companies

Wednesday, 21 December 2011 00:01 - - {{hitsCtrl.values.hits}}

The Maldives Government is committed to implementing all contracts that have been entered into with foreign companies wanting to do business in the island state.

“We assure GMR that the Maldives Government will be 200 per cent behind the agreement. Any agreement that any party signs with the Maldives Government will be honoured. The Government understands the need for foreign investments and is aware of the role that foreign investments are playing,” President of Maldives, Mohamed Nasheed said on Monday.

The assurance came at a time when the GMR Group-led consortium, which is taking up the modernisation of Ibrahim Nasir International Airport here, is facing trouble in imposing a $25 airport development charge on passengers travelling abroad.

The Maldivian opposition has filed a law suit against this charge although the GMR-led consortium has been allowed to levy it under the various agreements that have been signed with the Maldives Government to undertake the project.

“The Government says that the provision for the charge has to be written in legislation. This is soon going to be tabled in Parliament. We have a majority in Parliament. I do not see a problem,” President Nasheed told a group of visiting Indian media persons.

The media team is in Maldives at the invitation of the GMR Group for the ground breaking ceremony of the new airport terminal building.

The GMR Group is not the only Indian company showing an interest in Maldives. Several other Indian companies from diverse fields, including hotels and education also see it as an investment opportunity.

Indian High Commissioner to Maldives, Dnyaneshwar M. Mulay, told the visiting media persons that the Sriram Group had set up a school while other Indian companies were looking at setting up a university, stadium and a sports complex.

Besides, the Tata Group is also looking at building 450 houses in Maldives, the Envoy added.

Maldivian Government officials added that there was scope for Indian companies to invest in IT, retail and medical space in the country.