According to Infra Economic Times India, the Maldives is expected to issue the engineering, procurement, and construction tender for Indian firms to develop Gulhifalhu Port in the Maldives by the end of the current fiscal year 2023-24 (April-March).
EXIM Bank, on behalf of the Government of India, has approved financing of the project through a Line of Credit extended to the Government of the Maldives, and as per guidelines, at least 75% of the products, works, and services covered by the Line of Credit must be sourced from India.
According to two senior officials from the EXIM Bank, which provides Lines of Credit to India’s neighbors and other countries for undertaking India-funded infrastructure projects, the project will cost $400 million.
The EPC bid is anticipated during the current fiscal year. Currently, land reclamation is being conducted for the development of the (greenfield) port.
according to a senior EXIM Bank official speaking with ET Infra.
Male’ Commercial Harbour, the extant main port in the Maldives’ capital Male’, has only one cargo berth and is overloaded beyond its handling capacity. People erroneously believe that the future port at nearby Gulhifalu will address the capacity problems. Nonetheless, it won’t. Possibly for the next five years, the port can be utilised. To find a genuine solution, President Yameen’s administration initiated a port expansion project in Thilafushi. However, Ibrahim’s administration terminated the initiative because they did not gain financially from it.
On behalf of the Government of India, EXIM Bank has given the Government of Maldives permission to pay for the project with a Line of Credit. According to the rules, at least 75% of the goods, works, and services covered by the Line of Credit must come from India.
Gulhifalhu Island will become a residential island based on the land plots awarded by the current administration in an effort to influence citizens in order to secure victory in the forthcoming presidential election.
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The procedure of land reclamation is challenging. Because the Maldives are susceptible to the effects of climate change, they are extremely stringent about adhering to proper environmental regulations, so the project is proceeding at a slow pace.
said another senior official from EXIM Bank. As reported by India’s Infra Economic Times.
It is an obvious excuse for a layperson to state that it is challenging. To date, no Indian company’s initiated projects have produced a measurable outcome. They employed antiquated techniques for construction projects, such as using steel containers to transport cement, etc. Projects are being delayed on purpose.
The Gulhifalhu Port will have an initial capacity of 400,000 TEUs (twenty-foot equivalent unit containers) and will feature the development of a main administration area, container terminal, general cargo terminal, port service quay, bonded warehouse, and domestic quay.
Gulhifalhu Port is currently under construction, with funding from an EXIM Bank Line of Credit Facility. This project’s consulting services are managed by reputable English and Chinese firms. Maldives Port Ltd, the country’s port authority, stated in its annual report for 2022 that the conclusion of this port in 2026 is anticipated to increase port activity to meet increased demand.
Ibrahim Afraath, Director at GulhiFalhu Investment Ltd https://www.linkedin.com/in/ibrahim-afraath-333893b4
The EPC tender will be open only to Indian firms, as it is a bilateral agreement between the governments of India and Maldives, funded by the EXIM Bank, and at least 75% of the materials required for the project must be sourced from India,”
the second official explained. Current Maldives exposure at EXIM Bank is approximately $1.4 billion
In addition to develop Gulhifalhu Port project, India is involved in the development of terminals at Hanimaadhoo and Gan Island, as well as a bridge connecting Male, Gulhifalhu, and Thilafushi as part of the Greater Male Connectivity Project.
These projects were not initiated during the current administration’s five-year term, and taxpayer funds are being used to employ Maldives-based project workers and make other ongoing payments.