US embassy cable - 04COLOMBO1409

UNCLAS SECTION 01 OF 05 COLOMBO 001409 
 
SIPDIS 
 
COMMERCE FOR ARI BENAISSA 
DEPT FOR SA/INS AND EB/CBA DWINSTEAD 
USDOC FOR 4440 MAC/AP/ASIA BUSINESS CENTER 
 
E.O. 12958: N/A 
TAGS: KTDB, BTIO, ECON, ETRD, BEXP, MV, Maldives, ECONOMICS 
SUBJECT: IMI MALDIVES INFRASTRUCTURE OPPORTUNITIES 
 
REF: Colombo 1308 
 
1.  Summary: The Government of Maldives has ambitious 
infrastructure development plans that present new business 
opportunities for US companies. Projects include commercial 
ports and fisheries harbors, airports, new residential and 
resort islands, land bridges, information and communication 
technology networks and electricity generation.  In 
addition, the telecommunications and tourism sectors are to 
be expanded.  Proposals that include financing options are 
particularly attractive.  Bidding has closed for some of 
the projects, but significant subcontracting and supply 
opportunities may be available.  End Summary. 
 
2.  The following projects represent the most significant 
infrastructure upgrades taking place in the Republic of 
Maldives: 
 
Northern Transshipment Port 
--------------------------- 
 
The Government of the Republic of Maldives (GORM) is 
seeking financing for a deep-water port on the island of 
Huvarafushi, in the north, to serve as a transshipment 
point for cargo destined for ports on the east coast of 
India.  India does not have a deep-water port due to its 
continental shelf, which runs far out into the sea on the 
east coast. GORM has completed an economic feasibility 
study on the proposed port, and an engineering study is 
planned.  GORM hopes to start construction by 2005.  A 
British-based consortium is currently developing the 
project, which will be built on BOT (Build, Operate & 
Transfer) terms for 35 to 40 years.  The port will be 
privately owned, although the GORM will maintain 15 percent 
interest.  Over 60 percent of the $500,000 million required 
finance has been raised, and GORM is looking for a private 
consortium to fund the remainder. 
 
For more information, please contact: 
Ministry of Trade and Industries 
Ghazee Building, 
Ameer Ahmed Magu, 
Male', 20-05, Republic of Maldives, 
Tel: 960-323668/315593 
Fax: 960-323840 
Email: contact@trademin.gov.mv 
Website: http://www.trademin.gov.mv 
 
Maldives Ports Development Project - Regional Ports 
--------------------------------------------- ------ 
 
Two commercial ports are currently under construction: in 
the north (Haa Dhaalu Atoll, Kulhudhuffushi Island) and the 
south (Addu Atoll, Hithadhoo Island).  Both are scheduled 
to be completed in February 2005 and ready for operation by 
the end of March 2005.   The ports will operate primarily 
for international shipping, but each port will include one 
berth for domestic boats for trans-shipment to the other 
islands.  The northern port, which is sheltered, will 
accommodate ships up to 1000 gross tons at the alongside 
quay, while larger ships will have to anchor outside and be 
lightered using barges and tugs.  The southern port, which 
is open to the lagoon inside the atoll, will accommodate up 
to 3000 gross tons at its alongside quay. 
 
For more information, please contact: 
Ministry of Transport and Civil Aviation 
Huravee Building 
Ameer Ahmed Magu 
Male', 20-05, Republic of Maldives 
Attn: Ahmed Wajeeh 
Tel: 960-333047 
Fax: 960-323994 
Email: wajeeh@transport.gov.mv 
 
Link Bridge 
----------- 
 
A bridge linking the capital Male' with Male' International 
Airport (Hulhule Island) is in development through the 
Ministry of Transport and Civil Aviation.  Hulhule is 
already connected by a sand causeway to the developing 
settlement of Hulhumale. The government has sought bids for 
consultants and financiers for the establishment of a dual 
carriage four-lane bridge, on BOT terms. 
 
The distance between the islands of Male' and Hulhule, at 
the proposed linkage sites, is approximately 1000 meters 
(1km), with a depth of up to 50 meters.  The project will 
include an underpass of approximately 360 meters and other 
links between Male' and Hulhule Island.  Closing date for 
consultancy services was May 24, 2004.  Closing date for 
submission of Expression of Interest for financing was June 
30, 2004.  Winners will need both product and services 
support. 
 
The GORM is also planning to build a bridge connecting 
Male' and Villingili, the next closet residential island. 
There is no timeframe currently on this project. 
 
For more information, please contact: 
Mr. Mohamed Shafeeg Mahmood 
Deputy Director (MACL) 
Ministry of Transport and Civil Aviation 
Male, Republic of Maldives 
Tel: 960-772662 
Fax: 960-323994 
Email: bridgeinfo@transport.gov.mv 
 
Harbor Dredging for Fishing Villages 
------------------------------------ 
 
The initial stage of a harbor-dredging project is currently 
underway, dredging the shallow waters of 20 islands over 
four developmental regions to increase harbor 
accessibility.  The Maldives Transport and Contracting 
Company (MTCC) will carry out dredging. 
 
A total of 104 islands do not have an access to a 
constructed harbor.  The Ministry of Planning and National 
Development has assessed 92 islands in need of harbors, 70 
of which are covered in the project. The remaining islands 
have been provided with a harbor, have one in the planning 
stages or possess natural harbors with easy accessibility. 
 
The Ministry has not yet named all the islands to be 
included in this project.  The second phase of the project 
will involve a bidding process for the construction of 
jetties. 
 
For more information, please contact: 
Ministry of Planning and National Development 
Abdulla Shiba 
Ghazee Building 
Ameer Ahmed Magu 
Male', 20-05, Republic of Maldives 
Tel: 960-323919 
Fax: 960-327351 
Email: spatial@planning.gov.mv 
 
Hulhumale Development 
--------------------- 
The GORM initiated the Hulhumale construction project in 
1997 in response to limited land space and overcrowding 
problems. Named after Hulhule Island and the capital Male' 
Island, Hulhumale is a new landmass near Male' Island 
created by reclamation of an area around Hulhule Island 
where Male' International Airport is located. The project 
is divided into three reclamation and development phases. 
The first phase consists of residential, factory, mosque, 
and business buildings and public utilities. The latter 
phases will develop high-rise housing and commercial 
buildings and an area reserved for the airport's future 
expansion. 
 
Over $62 million has been spent to date on the first stage 
of Phase 1, which has reclaimed 465 acres of land.  About 
1000 people are currently in residence on the island, and 
basic amenities such as electricity, water and 
telecommunications are available at the same rates as 
Male'.  Approximately 50,000 people are expected to take 
residence by the end of Phase 1 in 2020.  At the end of the 
entire project, the island should accommodate 150,000 
people, or around one-half of the current population of the 
Maldives. 
 
During the course of the year, the Hulhumale Development 
Unit (HDU) is to put up for tender the building of 232 
condominiums. 
 
For more information, please contact: 
Hulhumale Development Unit (HDU) 
Mr. Mauroof Jameel 
Tel: 960-353535/336755 
Fax: 960-358892 
Email: mail@hdu.gov.mv 
 
The GORM recently accepted bids for consultant services for 
a feasibility study of a potential business park to be 
based on Hulhumale.  The park would be built on a 'build 
and operate' basis and will include office space, duty free 
shopping complex, government center, technology center, re- 
export processing center, banks, restaurants, 
administrative offices and a transport center. 
 
For more information on the status of the project, please 
contact: 
Foreign Investment Services Bureau 
Ministry of Trade and Industries 
First Floor, Ghazee Building 
Ameer Ahmed Magu 
Male', 20-05, Republic of Maldives 
Tel: 960-323890/328754 
Fax: 960-323756 
Website: www.investmaldives.org 
 
Resort Island Development 
------------------------- 
 
Bids closed on July 4 for eleven newly designated resort 
islands.  The new resorts will be privately owned and 
operated for a lease period of 25 years.  The results of 
the tender will be announced in September 2004 and the 
resorts are expected to be ready within 18 months.  An IMI 
with pertinent information on the successful bidders will 
follow once bids have been awarded. 
 
The new resorts will be located in the outermost atolls and 
will consequently require heavy investment in 
transportation in addition to resort infrastructure such as 
power plants, desalination plants, incinerators, and 
compactors, as well as appliances and furnishings. 
 
For more information, please contact: 
Ministry of Tourism 
First Floor, Ghazee Building 
Ameer Ahmed Magu 
Male', 20-05, Republic of Maldives 
Tel: 960-323224 
Fax: 960-322512 
Website: www.maldivestourism.gov.mv 
 
Airport Development Project 
--------------------------- 
 
The GORM has identified six islands spread throughout the 
atolls for future private airport development.  These 
domestic airports will have 200-meter runways and basic 
standard development costs approximating $2.5 million. 
Some islands will require land reclamation, and costs would 
increase accordingly.  One of the six islands, in Ari 
Atholhu Atoll, is currently under development by Villa 
Shipping and Trading Co., which also owns resort islands in 
the area, at a cost of about $10 million including land 
reclamation.  Others are open to development with no 
specific timeframe.  Airport development is encouraged by 
the recent opening of eleven new resort islands, spread 
throughout the atolls, which will require transport 
services to and from Male' International Airport.  The 
small number of hotel beds that could be served by 
additional domestic airports, however, may not make airport 
development feasible in the near future. 
 
Islands open for airport development include: Dhigurah 
(Shaviyani Atoll), Emboodhoofushi (Dhaal Atoll), Usfushi 
(Thaa Atoll), Dhiyadhoo (Gaaf Alif Atoll), Fuammulah 
(Gnaviyani Atoll). 
 
For more information, please contact: 
Ministry of Transport and Civil Aviation 
Civil Aviation Department 
Tel: 960-232993 
Fax: 960-232994 
Email: civac@aviainfo.gov.mv 
 
Male' International Airport Upgrade Project - Phase IV 
--------------------------------------------- -------- 
Expansion is underway to ease crowding at Male' 
International Airport.  Phase IV of the Male' Airport 
Upgrading Project, launched in 2002, includes: Departure 
Terminal Extension; New Power House and High Voltage 
Distribution System; New Air Traffic Control Tower and ATS 
Building; New Domestic Terminal; Institutional 
Strengthening and Manpower Development; and MSS Radar and 
extended VHF System.  Total cost is $33 million.  All 
tenders have been awarded and construction should be 
completed by year's end.  There may be supply and service 
opportunities with the tender winners. 
 
For more information, please contact: 
Projects and Planning Services Section 
Male' International Airport 
Tel: 960-323508 
Fax: 960-325034 
Email: projects@airports.com.mv 
 
 
Cellular Phone Liberalization 
----------------------------- 
 
The Telecommunications Authority of the Maldives (TAM) is 
opening the mobile cellular service sector to competition 
and plans to issue a second nationwide mobile license. 
Reftel provides additional information on this opportunity. 
 
Network Turnkey Project 
----------------------- 
 
Seven parties are bidding to build a network under the 
Information Technology Development Project (ITDP).  The 
Network (Turnkey) component of the ITDP, for the 
establishment of the Government Network of Maldives (GNM), 
is expected to begin late this year and be completed by the 
end of 2006.  This network will electronically connect 
government organizations in Male' and on 23 main islands 
and will be composed of a Metropolitan Area Network built 
over Ethernet and DSL technologies; a National Satellite 
Network for the connection of islands; distribution 
networks for the connection of sites inside the islands; 
and common network infrastructure for the hosting of 
government applications and the secured access to the 
Internet.  Network equipment will be complemented with the 
required civil works, engineering, installation, 
validation, maintenance and training services to achieve a 
fully operational result. 
 
For more information, please contact: 
Ministry of Communication, Science and Technology 
4th Floor, Aage 
12 Boduthakurufaanu Magu, 
Male', 20-05, Republic of Maldives 
Tel: 960-331695 
Fax: 960-331694 
Email: secretariat@mcst.gov.mv or webmaster@mcst.gov.mv 
Website: secretariat@mcst.gov.mv 
 
Outer Island Electrification 
---------------------------- 
 
The Republic of Maldives has received a loan from the Asian 
Development Bank (ADB) towards the cost of the Outer 
Islands Electrification Project. The Ministry of Atolls 
Development is inviting bids for the implementation of a 
turnkey contract for the improvement of electricity supply 
in 12 sub-project areas in 12 islands through the 
installation, augmentation, expansion or modification and 
adjustment of the following: powerhouses, bulk fuel tanks, 
diesel generator sets with auxiliary equipment including 
daily fuel tanks, generator and distribution control, 
protection and measurement panels, and underground 
distribution systems, including trenching, cables, and 
distribution boxes, customer sub-mains and meter boards. 
International competitive bidding will be conducted in 
accordance with ADB's Two-Stage: Two-Envelope bidding 
procedure and is open to all bidders from eligible source 
countries.  Bids were due on July 2, 2004. 
For more information, please contact: 
Ministry of Atolls Development 
Section G 
Attention: Mr. Mohamed Farook 
Deputy Director General 
3rd Floor, MTCC Tower 
Boduthakurufaanu Magu 
Male', Republic of Maldives 
Tel: 960-328744 
Fax: 960-333755 
Email: projects@atolls.gov.mv 
 
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