GMR Male International Airport Limited (GMIAL) has been awarded compensation amounting to $270m, following the cancellation of an airport development contract by the Government of Maldives in November 2012.
The compensation includes termination payments and legal costs, as well as debt and equity invested in the project.
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In 2010, GMIAL signed a concession agreement with the Government of Maldives and Maldives Airport Company to modernise Ibrahim Nasir International Airport.
However, the agreement was rejected by the Government of Maldives and Maldives Airport Company in November 2012.
After four years, an international arbitral tribunal has issued its final ruling in favour of GMIAL.
A GMR spokesperson said: “It has always been our firm belief that the cancellation of concession agreement by Government of Maldives was wrongful. We are happy to note that the Tribunal has unequivocally upheld this stand and closed the adjudication with a final award of compensation.
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By GlobalData“This award is a testimony to the high standards of conduct, corporate governance and commitment observed by GMR Group across all its businesses."
In June 2014, the arbitration tribunal observed that GoM and MACL had wrongfully repudiated GMIAL's concession agreement, and that they were jointly responsible for the damages and losses caused.
