The government is reviewing the agreement for the Ihavandhippolhu Atoll bunkering facility project, to provide refuel and services to marine vessels from overseas, Minister of Economic Development and Trade, Mohamed Saeed said.
Replying to a question in Parliament on Tuesday, Saeed said that State Trading Organization (STO)’s agreement with Qatar’s UrbaCon Trading and Contracting was being reviewed.
STO signed a Memorandum of Understanding (MoU) with UrbaCon in August this year to develop a bunkering facility to refuel large vessels crossing the Ihavandhippolhu area.
The project was not stopped. It [the MoU] was not signed by my ministry. STO signed the agreement. I sought clarification on whether it was active, and I was told it was active.
Minister of Economic Development and Trade, Mohamed Saeed, speaking at Parliament.
The administration’s vision is to begin bunkering services in Ihavandhippolhu Atoll, Saeed said in response to a question by Member of Parliament for Hoarafushi and current Deputy Speaker Ahmed Saleem in Parliament on Tuesday, explaining that the administration’s intention is to start additional services along with the bunkering services.
Located at a crossroads of the Indian Ocean’s principal east-west shipping lanes, Ihavandhippolhu Atoll sees the daily passage of over 300 large vessels. With the global bunkering industry valued at a staggering US$150 billion, the initiative, led by STO, aspires to introduce bunkering services to the region, promising wide-ranging benefits for the entire country, STO had earlier said. The atoll includes the islands of Thuraakunu, Uligamu, Hoarafushi, Ihavandhoo and Molhadhoo.
The MoU signed with UrbaCon covered the construction of a national strategic reserve of oil in the port city, carrying out feasibility studies for the launch of international bunkering services and the practical implementation of the project, STO said.
