Minister of Economic Development Mohamed Saeed has revealed that the current government does not have any plans for the Ihavandhippolhu bunkering project as of now.
While the current administration confirms lack of any plans for the project, the previous government had entered into an agreement with a contractor to launch bunkering services in Ihavandhippolhu.
In response to a question raised by Hoarafushi MP Ahmed Saleem, Minister Saeed said that the State Trading Organization (STO) had entered into an agreement with a Qatari company to set up the oil bunkering facility on the island.
"The MoU was signed with STO. None of the project components were halted, but the government has not made any decisions about how to proceed with the initiative right now. What we have learned is that the MoU is still active," Ahmed Saleem said.
STO signed the agreement with Qatar's Urbacon Trading and Contracting (UTC) to develop a fuel storage and oil bunkering facility in Ihavandhippolhu, which the northern-most atoll of the Maldives. The projected was contracted to UTC in August 2023.
The project also includes the development of a national strategic reserve of oil at the facility.
According to the minister, the MoU is currently being reviewed to decide the next step for the project.
Due to the geographical location of the Maldives, more than 300 industrial-level ships and carriers traverse the channel between Ihavandhippolhu. Despite the high frequency of ships traveling across the channel, the area lacks viable facilities for the carriers.
The minister said it is the vision of the government to establish a bunkering facility in the northern-most location of the Maldives to provide bunkering services to these carriers.
According to Minister Saeed, the Memorandum of Understanding (MoU) between STO and UTC simply sought a feasibility check for the bunkering project.
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