Reference No: 98/08/2012
13 August 2012
MDP Expresses Concerns on Foreign Investment Downturn
The Maldivian Democratic Party (MDP) strongly condemns Dr. Waheed’s administration for its deliberate attempts to hinder on-going projects by foreign investors with the aim of deterring future foreign investments in Maldives. Dr. Waheed’s administration dismissed the continuous appeals by foreign investors for cooperation, resulting in losses in excess of millions of dollars.
The ‘Public-Private Partnership’ program was one of the key policies of the MDP government aimed at providing high-quality social services (such as education, waste management and health services) and infrastructure developments (such as airports, housing and ports) in a cost effective manner. The proceeds from these projects for the Government totalled over US$ 1.5 bn.
However, since Dr. Waheed’s assumption of power, a number of on-going projects under the ‘Public-Private Partnership’ program have been suspended. Examples include the concession of the Ibrahim Nasir International Airport to GMR- MAHB Consortium, construction and development of social housing by TATA Housing Development Company and the solid waste management project at Thilafushi by UPL Environmental Engineers.
Failure to honour these agreements have now led to investors losing confidence causing irreparable damage to the foreign investment climate of Maldives. The MDP believes the intentional actions taken to halt current foreign investment projects and prevent future foreign investments are done in the interest of preserving the status and wealth of few local wealthy businessmen. The rating of Maldives on World Bank’s ‘Ease of Doing Business Report’ has dropped since the transfer of power to Dr. Waheed’s administration.
The MDP is extremely worried about the deteriorating environment for the investors and strongly condemns the continued threats posed by Dr. Waheed’s administration to foreign investors.
Hamid Abdul Ghafoor
Spokesperson, International Affairs