State Trading Organization (STO) renewed their agreement with Maldives Airports Company Ltd (MACL) to provide USD 200 million for supply of diesel and jet fuel.
The agreement was signed on 19th March by Managing Directors of MACL, Adil Moosa and Managing Director of STO, Ahmed Shaheer.
Adil stated that the agreement will cover the cost of supplying diesel and jet fuel for the upcoming two years, and that STO will be supplying diesel and jet fuel at a lower cost compared to the last six years.
“We have received a better rate than the previous years. This is mainly because of the 25,000 ton vessel which STO has recently added to their operations”, Adil added.
Adil further spoke about the development of Velana International Airport, which will be equipped with a 45,000 metric-ton fuel farm.
Speaking at the signing ceremony, Shaheer explained why STO signed the agreement with MACL. “We wanted the economy to prosper. Were we to give such a large quantity of fuel to a foreign party, it would not be an advantage to our country, nor our economy”.
Shaheer mentioned that the rate was decided in accordance with the international price index.