Announcements



announcement

UNDP
Position: Project Manager – LECReD



announcement

Transparency Maldives
Position: Research Consultant



announcement

Advertise your job/event/promo on Minivan News

 

announcement


Page added on March 31, 2014

STO’s Hulhumalé hotel to be completed in one year

STO’s Hulhumalé hotel to be completed in one year thumbnail

The State Trading Organisation (STO) – Maldives’ primary wholesaler – has told local media that the five-star hotel it is developing in Hulhumalé will be fully completed in 12 months’ time.

Managing Director Ali Azim told Sun Online that he expected some rooms to be completed and available for use by January 2015.

The original contract for the development of the 250-room Radisson Blu Hotel was signed between the STO and the US Carlson Group.

Financial constraints delayed the start of the project until 2011, while the STO signed a US$32 million syndicated loan agreement in October 2012 to finance the development.

Full speed has been resumed on the construction after a further slowdown last year, Azim told Sun.

In 2012, then STO MD Shahid Ali told local media that the organisation needed at least “at least three resorts and one hotel” to meet its demand for foreign currency at a time the country was facing a ongoing dollar shortage.

“We are trying to a find a way to earn the foreign currency we need without relying on another party for it,” Shahid told Haveeru.

The Maldives grapples with a foreign currency deficit due to a heavy import-export imbalance. Goods from overseas must be purchased with foreign currency, but the Maldives has little ability to earn this outside the resort industry, which is thought to account for around 90 percent of the country’s foreign exchanges.

Since that time, new President Abdulla Yameen – who replaced Shahid soon after assuming office – has declared the STO bankrupt.

“Not only does STO not have dollars, it does not have Maldivian Rufiyaa either. Funding the oil import through STO is now a burden for the state,” said Yameen last November.

The STO sparked fears of an impending oil shortage crisis in early November, after Shahid warned the company would run out of oil in a matter of days if it did not pay some of its US$20 million debt to suppliers.

Shahid told an emergency meeting of parliament that government-owned companies had failed to pay the STO the almost US$40 million it was owed, and appealed to the central bank to use the foreign currency reserves to bail it out of its debt.

After his appointment as MD, Ali Azim announced plans to cut operational costs by MVR 50 million in 2014 (US$ 3,242,542).

FacebookTwitterEmailGoogle GmailGoogle+BeboPocketShare


Comments are closed.


  • bulletchina: People cannot blindly believe in Islamism. If Islamism teaches the true humanity why do you think most of the terrorists represents Muslim community....
  • Kashim: @MissIndia Dollar is a worthless currency due of Hyper Inflation. Chinese Yuan is future for us.
  • Niyaz: Maldives is the only country which has absolute freedom for journalists. There are procedures and moral ethics to follow. Anyone can write anything on any...
  • Reality hurts: There is no press freedom here is Maldives. No freedom FROM religion. You can never get away from them. No matter how stupid and illogical the religions...
  • Hero's brother: Hey, Hero. I told you that your masters were duping you. Just remember; anything extra I pay for feeding my family is coming out of YOUR pocket…...
  • PLA: Ah, but Commonwealth, where were you when the colonialist scum took over our country and attempted to murder our legally elected representatives? You reap what...
  • PLA: Bridge is for gang thugs to race around. Not for Maldivians. Bridge will fall down, and take rich thugs and their gold-plated mercedes with them.
  • DMF: ayoud h on Wed, 17th Dec 2014 7:03 PM Seems we have another idiot posting on here that knows nothing about how countries operate in the world of business. Every...

announcement

Torture victims in the Maldives tell their stories