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Thursday, November 29, 2012

Maldives Scraps GMR Contract


The Maldives government on Tuesday Nov 27,2012 scrapped GMR Group’s airport project near capital Male, evoking strong reactions from the India, which said the move would send “a very negative signal” to foreign investors.

India’s external affairs minister Salman Khurshid even said -
“Whatever legal decision is taken (by Maldives) will have repercussions here.” GMR said, “This unlawful and premature notice on the pretext that the Concession Agreement (CA) is ‘void’, is completely devoid of any locus standi, and is, therefore, being challenged by the company before the competent forums.”

The Rs. 2,700-crore contract to operate the Ibrahim Nasir International Airport at Hulhulé Island near Malé was signed on June 28, 2010 by then president Mohamed Nasheed’s government.
 


The trouble began after a civil court in Maldives ruled that GMR cannot charge $27 ( Rs. 1,458) from passengers as airport development charge and insurance surcharge, the Indian infrastructure giant had taken the case to Singapore for arbitration. GMR has been charging the amount from each passenger since Jan 2012

The project had been hanging in balance ever since the regime changedand some coalition partners of the current regime, headed by President Mohamed Waheed, held a rally against GMR on Nov 3,2012.

Singapore Court stays termination of GMR Male airport contract

The Singapore High Court on Monday Dec 3,2012 stayed the Maldives Government’s decision to terminate the USD 500 million contract awarded to Indian infrastructure major GMR-led consortium for modernising the Male international airport, paving way for the operations to continue.
“The Singapore High Court has passed an injunction against the Maldivian Airport Company Limited (MACL) and the government from taking any action based on the November 27 letter,” a GMR spokesperson told

 

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