Only company shares were sold, not the airport: Shahid

Managing Director of State Trading Organisation (STO) and Addu International Airport Company (AIA), Shahid Ali has said that it was not Gan Airport, but thirty percent shares of AIA, the company developing Gan Airport, that was sold to Champa Hussain Afeef’s Kasa Holdings.

Shahid said this at a press conference held at STO Head Office today.

AIA is a joint venture between STO, Maldives Airports Company Limited (MACL), and Gan Airport Company Limited.

“People have been saying that 30 percent of Gan Airport has been sold to a private group. Gan Airport’s land, infrastructure and facilities are owned 100 percent by the government, because Gan Airport Company is a 100 percent government company. The assets belong fully to that company. That company has leased [Gan Airport] to AIA for 50 years,” he said.

Shahid said that Kasa Holdings was given priority in the bidding process because it is a Maldivian company, and stressed that no corruption was involved.

Managing Director of MACL Mohamed Ibrahim said at the press conference that even though 30 percent of AIA shares were sold to Kasa Holdings, the government will still have control over AIA.

The cost of developing Gan Airport is estimated at US$40 million (MVR616 million). Equity of MVR200 million was obtained for the project by selling shares.

Shahid said that the pre-bid meeting was held today with the three contractors shortlisted for the development of the airport.

He said that the bid will be submitted on 28 November, and that work will begin in January 2013.

The airport development project includes runway extension, apron repair, runway resurfacing, and the establishment of a seaplane base.