GMR seeks $803m in damages from Maldives for cancellation of airport deal
GMR Infrastructure (GMR) has claimed $803m of damages from the Maldivian Government for 'wrongfully' terminating the international airport contract.
GMR Infrastructure (GMR) has claimed $803m in damages from the Maldivian Government for ‘wrongfully’ terminating the international airport contract.
Through its subsidiary GMR Male’ International Airport Private (GMIAL), GMR has also made a plea to the Arbitral Tribunal in Singapore for further compensation for loss of reputation as a result of wrongful repudiation of the concession agreement.
"GMR and Malaysia Airports had won the contract to upgrade the airport for a total cost of $511m."
The agreement was terminated by the Maldivian Government after differences between the two parties cropped up, following which, the government took over the airport operations.
At that time, the government said the contract had been awarded by the previous government through a process that was not transparent.
GMR Infrastructure is the infrastructure holding company that funds the capital requirements of various infrastructure projects across sectors. It undertakes the development of the infrastructure projects through its various subsidiaries.
GMR and Malaysia Airports had won the contract to upgrade the airport for a total cost of $511m.
The 25-year concession agreement involved upgrading the terminal and setting up an additional terminal to increase the capacity of the airport. The two partners had reportedly invested $230m in the project during the two years they managed the airport.
