The loan taken out to develop Velana International Airport (VIA) is a worthwhile investment, which ‘will pay off by itself’, says Ahmed Nazeer, one of the pioneers of tourism sector in the Maldives.
Speaking in the panel discussion held under the title ‘My Nation, My Future’, Nazeer and other leading figures in the country’s economy, focused on the major infrastructure development projects started by the Government.
‘Our investment into the airport is around US$ 1 billion. The foreign experts have determined that we can recover that amount in less than 15 years. Then our two biggest lenders, China and Middle Eastern parties they had given the loans at a very minimal interest rate for 25 years. Paying back is not an issue given the growth of our economy, it will pay back on its own. That is why we’re so upbeat about this,’ Nazeer said.
He noted that the airport was hemorrhaging money due to the concessional agreement with GMR, the previous contractor. The dispute with GMR was settled at a price of US$ 270 million. Following the settlement, the airport had turned around their financial performance generating a profit of over US$ 450 million in the past five years.
Nazeer also spoke about the growth in the economy.
‘The government is presently running an accelerated economic development program. I think we’re also achieving the results. This is nothing new. Economic growth has been there all the time. When you compare Maldives from 40 years back to now, there are staggering changes. Last five years, was also phenomenal,’ he said.
Mohamed Umar Manik, another pioneer in tourism sector, spoke about the start of economic expansion in the country.
‘When the English were here, they had made a small landing strip. The leadership then had this vision that this barebones landing strip must be developed, which then became Hulhule Airport. That airport was the result of the hard work carried out by Maldivians. When tourism rolled in, the Government had decided that this must be further developed. Somehow, then we were able to get a hold of a grant aid of US$ 30 million from Kuwait Fund. This was the start of the modern day airport we see today,’ he said.
Delving into the history Manik described the endeavor of developing the airport as a worthwhile one.
‘Based on all the factors that needed to be taken into consideration, then the amount of money we’re spending on this is worthwhile. This is not a foolish endeavor. We cannot develop this is bits and pieces, it must be done in one single project and done well,’ he added.
Panelist Mohamed Ali Janah addressed the issue of debt taken on by the present administration.
‘This panel right here has taken more in terms of personal risk than the risk the Government has taken with this loan. We know how to pay back our loans. When you take into account the whole apparatus of the state and state bodies, the investment of US$ 1 billion seems very minimal in comparison. The net worth of these individuals here matches that risk. Every time the nation comes at potential risk we will rise up to save the nation. Rest assured, we will not reach that level,’ he said.
Janah cited that it was vital for the nation to remain stable for development to continue as charted.
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