Hyderabad: The GMR Group on Thursday said it has won an international arbitration against the Maldives government and has been awarded $270 million as compensation from the island nation after its contract to build an international airport in Male was arbitrary cancelled.
The GMR Male International Airport Limited (GMIAL) is a subsidiary of GMR Infrastructure Limited.
The compensation covers the debt and equity invested in the project along with a return of 17 per cent and also termination payments and legal costs. The compensation is net of taxes that GMR Male may be required to pay in the Maldives, said a statement from the company. GMIAL had entered into a Concession Agreement with Government of Maldives (GoM) and the Maldives Airport Company Limited (MACL) for the modernisation and operation of the Ibrahim Nasir International Airport (INIA) in 2010.
“The Concession Agreement was wrongfully repudiated by the Government of Maldives and the Maldives Airport Company Limited on 29th November 2012 alleging that the same was void ab initio. After detailed further proceedings, the tribunal has issued its final order whereby it has awarded compensation to GMIAL,” a press release from GMR group said.
A GMR spokesperson said: “It has always been our firm belief that the cancellation of the Concession Agreement by the Government of Maldives was wrongful.”
