No matter how big the Saudi project is, the gov. will not have to give sovereign guarantee for them to take loans by putting the people in debt !
BY: latheef, 5 Mar 2017
No matter how many large projects are awarded to Saudi Arabia, the government will never have to provide sovereign guarantee for them to take loans by putting the people of Maldives in debt.
If we look at the past, MDP government gave away Velana International Airport with just 79 million dollars as advance. But then what we saw was MDP government giving sovereign guarantee to GMR for them to take a loan of 185 million dollars. The people of Maldives were not aware of this heinous crime. As a result, the people of Maldives had to pay for the loan GMR took from EXIM Bank of India.
Projects are outsourced in countries, so that they will not have a huge financial burden and to reduce debt. If this goal is not achieved there is no point in outsourcing projects, because the country itself can take loans without involving third parties.
Velana International Airport is currently being developed with loans taken directly by the government as a project that is being conducted by Maldives. This shows that the government has the capacity to take loans and develop the airport.
Even if Faafu Atoll project is awarded to Saudi Arabia, or a Saudi company, the government will not have to provide sovereign guarantee to them so that they can take loans. The people will not be in debt and they will not have any responsibility.
The project will be invested by the people who the project is awarded to. The project will be an investment for Maldivians and a huge source of revenue for Maldivians. A huge investment without any financial burdens. Whatever name the project is called, the project will be conducted in Maldives and the state will receive revenue. As a result the people of Maldives will benefit from
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