No result from diversification, reserve continues to decline: Yameen

Former President Abdulla Yameen Abdulla Yameen has criticized the current administration for alleged failure to improve the public finances.

The former head of state claimed that the current government’s efforts for economic diversification has been failing while the country’s reserves used to make foreign transactions has been depleting.

While speaking at a meeting of Yameen’s new People’s National Front (PNF) party, the former president questioned about the lucrativeness of the current administration’s planned bunkering service. He opined vessels would not dock only for refueling and required more than one reason to seek bunkering services.

Yameen said that his former administration had announced “iHavan” at Ihavandhippolhu, where the current bunkering facility will be developed, as an integrated project to ensure international vessels were incentivized in seeking bunkering services.

“The iHavan project consists of multiple components, one of which is bunkering but since it is an on-shore facility, which is why my plan was to develop it as a port of call,” Yameen said.

“So, it is debatable whether procuring a standalone tanker to provide refueling services will be a successful initiative.”

Yameen said his plan included bunkering services alongside a commercial port, shopping malls, real-estate, and tourist resort development. The project however did not proceed according to plan.

While the current government made earlier efforts to launch bunkering services in July, the date has been pushed back to Thursday this week. Minister of Economic Development Mohamed Saeed earlier said that bunkering to vessels will be provided by two 4,000-ton tankers.

The minister earlier claimed the launch of bunkering services will boost the Maldives GDP by USD 400 million.

Besides the bunkering initiative, Yameen had also criticized the current administration’s 20-year vision of Velana International Airport (VIA) expansion and development project.

Yameen said the government must inform the public when the planned relocation of fuel tankers in Funadhoo to establish a seaplane terminal on the island will become profitable to the state.

“Why not make realistic and believable statements in the name of diversification? It is not diversification, at least definitely not according to statistics. The usable reserve is on a nose dive, so, we don’t see any impact of this diversification,” Yameen criticized.

The Maldives government has been taking stringent corrective measures to reduce state expenditure and drive-up revenue amid growing debt woes and surging foreign currency exchange rates.

The administration has been prioritizing economic diversification to reduce reliance on tourism and fisheries; two of the country’s largest economic sectors.