Economic Minister: USD 1.5M revenue generated from bunkering to date

Economic Minister Mohamed Saeed states bunkering service has generated USD 1.5 million in revenue so far.

He made the remark while speaking at ‘Haftha 52’ program which is aimed at highlighting the current administration’s undertakings as it marks one year in office.

While speaking during the program, Minister Saeed said no three-year strategic mid-term plan apart from President Dr. Mohamed Muizzu’s contained plans to generate revenue from an industry other than the tourism industry. In this trajectory, he underscored that international bunkering service was launched in the Maldives on September 19^th as part of the current administration’s efforts to diversify the Maldivian economy.

“Even with difficulties, STO has generated approximately USD 1.5 million in revenue after commencing the service as an offshore service,” he added, while noting a contractor has been secured to develop the harbor at Ihavandhippolhu under the Maldives Economic Gateway project.

Meanwhile, the Minister said an international financing centre has also been established as part of efforts to diversify the economy.

As per the Minister, only MVR 65 million of revenue generated by the Maldives enters the government. With MVR 96 million incurred in recurrent expenses, Minister Saeed said the government racks up MVR 40 million per day in debt.

“This means Maldives is in a deficit of approximately USD 2 million every day,” he explained.

Emphasizing this as Maldives’ current situation, the Minister said history will be repeated if policies such as the ones put forth by President Muizzu are not implemented.

Two vessels are presently utilized to provide offshore bunkering service at Ihavandhippolhu. STO provides the service in collaboration with Dutch company Vitol.

Prior to this, Minister Saeed said that between 300 and 450 international commercial vessels travel across the northern Maldives channel annually. Saeed said providing bunkering services to even one percent of the vessels that traveled the channel would increase the Maldives GDP to USD 400 million in the first year alone.