Maldives: China builds projects at inflated prices

NEW DELHI: The new finance minister of the Maldives said on Monday that China was carrying out infrastructure projects at prices considerably higher than those originally proposed, but that the island nation could not to avoid his commitments.

The administration of President Ibrahim Mohamed Solih, who took office this month, is currently reviewing contracts with his predecessor Abdulla Yameen. Most have gone to Chinese companies and are afraid of having their country in debt.

During five years of construction, China built a sea bridge connecting the capital, Male, to the main airport of another island. It develops the airport itself and builds mbad housing on land reclaimed from the sea.

But Finance Minister Ibrahim Ameer told reporters during a visit to New Delhi that his officials had spent the first week of his term trying to reconcile the loans the previous government had made. for these projects and the sovereign guarantees he had given them.

"We think most of these projects are inflated and we are looking at them," said Ameer.

But he said the government could not go back on the contracts because many of them, including the bridge, were already finished.

"We can not do much in terms of renegotiation, but our goal would be to reduce the cost of our infrastructure projects," he said.

One of the projects was a male hospital attributed to China, whose cost had already risen to $ 140 million, far more than a competing $ 54 million offering that had been made originally, said Ameer.

China has built ports, bridges and highways in countries such as Bangladesh, Nepal, Sri Lanka and its ally, Pakistan, as part of its "Belt and Roads" initiative for a corridor Trade and transit through Asia and Europe.

But recently he has been criticized for the fact that many of his colossal projects costing millions of dollars are leading to the debt of smaller countries.

India, which is the traditional partner of most South Asian countries, further felt that China's extensive diplomacy aimed at securing an outpost in some island nations such as than Sri Lanka and the Maldives.

Maldives Foreign Minister Abdulla Shahid badured Indian leaders that his country wanted the best of ties with its immediate neighbors and that it would return to a policy of "India's". 39; first. "

Prime Minister Narendra Modi attended the inauguration of Solih and said that India was ready to help the country cope with its financial difficulties.

China rejected accusations that it was indebted to the Maldives and expressed hope that the new government will continue its policies to attract investment.