Falcon Energy consortium promises legal action against government over Gaafaru wind farm
18 Dec 2011, 6:58 PM
Eleanor Johnstone
Local newspaper Haveeru has published an interview with the purported managing director of the Falcon Energy Consortium, Steven David Jones, who told the paper the group would take legal action against the government’s termination of a US$370 million (Rf5.7 billion) memorandum of understanding (MoU) to develop a wind farm at Gaafaru, in North Male’ Atoll.
According to an email interview between Haveeru News and Jones’ Maldivian business partner, Falcon Energy claimed that it was not informed of the termination and had meanwhile invested nearly US$1 million (Rf15 million) in meteorological masts and initial readings.
The government has disputed the existence of a legally-binding contract since media reports of the termination were published in August. Maldives’ State Electric Company (STELCO)’s Managing Director Dr Mohamed Zaid had previously told Minivan News that no private partnership agreement had been signed with General Electric (GE) and Falcon Energy.
In 2010 STELCO signed a Memorandum of Understanding (MoU) on behalf of the government with Falcon Energy and GE. But according to Jones, STELCO then agreed to amend its supposed agreement with Falcon to reflect the extra cost of laying an underwater cable, a feature not previously included in the MoU.
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