Gov’t Yet to Finalise Ihavandhippolhu Bunkering Project, Says Minister Saeed

Minister of Economic Development and Trade, Mohamed Saeed, clarified that while there is an existing agreement to offer bunkering services in Ihavandhippolhu, the government has not made a final decision on the implementation of the project, in a parliamentary session today.

Responding to a query from Hoarafushi MP Ahmed Saleem, Minister Saeed disclosed that the agreement, involving a Qatari company and STO, is currently under review and has not reached a conclusive stage.

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Last August, STO awarded the contract to Qatar’s UrbaCon Trading and Contracting (UCC) for the construction of an oil storage facility in Ihavandhippolhu. The project aims to establish a national strategic oil reserve in the developing port in Ihavandhippolhu.

Minister Saeed emphasised that the Memorandum of Understanding (MOU) is undergoing scrutiny to determine the appropriate course for the project’s progression.

Given the significant maritime traffic of over 300 new ships daily near Ihavandhippolhu, owing to the strategic location of the Maldives, Minister Saeed highlighted the limited avenues available for servicing these vessels in the area.

Addressing the issue, he stated that the government’s intention is to extend bunkering services and additional facilities to ships in the northern region of the Maldives. An agreement with Qatar’s UCC has been signed with this purpose in mind, as part of the broader initiative to cater to the growing demands of the maritime sector in the area.

Minister Saeed also affirmed the government’s commitment to progressing the iHavan project in Ihavandhippolhu, envisioning the Maldives as a central hub for international shipping lines transporting goods worth trillions of dollars annually.

Originally conceived as one of the flagship projects under the economic vision of the previous PPM government, the iHavan project’s master plan was completed during that administration.

Minister Saeed acknowledged the historical efforts of previous governments to implement the project in Ihavandhippolhu. He emphasised that despite the project being conceptualised earlier, its formal commencement began in 2014.