Maldives defends decision to cancel GMR airport contract amid row

Discussion in 'Economy & Infrastructure' started by Rage, Nov 28, 2012.

  1. Rage

    Rage DFI TEAM Stars and Ambassadors

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    The authorities in Maldives have defended a controversial decision to cancel the $500m (£312m) contract of an Indian firm to manage the Male airport.

    [​IMG]

    The deal faced "legal, technical and economic issues", President Mohamed Waheed's office said in a statement.

    The firm, GMR, said the decision to take "possession and control of the Ibrahim Nassir International Airport was "irrational" and "unlawful".

    India said the move would send a "very negative signal" to foreign investors.

    Delhi asked Male to ensure the safety and security of Indian interests and Indian citizens in Maldives.

    On Tuesday, the government in Male said it was advised by unnamed British and Singaporean lawyers to cancel the agreement with GMR.

    "The cabinet decided to terminate... on grounds that there were many legal, technical and economic issues regarding the agreement, and that it was legally invalid, and impossible to further continue," President Waheed's office said, news agency AFP reported.

    Former Maldivian leader Mohamed Nasheed, who had initiated the GMR deal, described the decision as a major blow to foreign investment and tourism.

    "This decision is bad for tourism, bad for the economy and bad for the Maldivian people," AFP quoted from a statement from Mr Nasheed.

    "This will put off potential investors for decades," he said.

    GMR has been running the airport since November 2010 in a joint venture with Malaysia Airports Holdings Berhad, the company said in a statement.

    GMR has a 77% stake in the operation. In 2010, the firm had won the right to operate the airport for 25 years.


    BBC News - Maldives defends GMR airport contract row
     
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  3. mahesh

    mahesh Regular Member

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    then who's flag pole fits nicely in there arse, sadly India have no good neighbors at all, i guess India have done enough to show it's interest in Maldives.for now let them go, In telugu there is a phrase "mundrundi musalamma pandaga"
     
  4. cobra commando

    cobra commando Tharki regiment Veteran Member Senior Member

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    GMR Infrastructure says
    Maldives airport concession
    pact valid


    Mumbai: GMR Infrastructure Ltd on Thursday said an international tribunal has declared that its concession agreement for Maldives airport was valid. GMR Male International Airport Ltd (GMIAL), a unit of GMR Infrastructure, had entered into a concession agreement with the government of Maldives and Maldives Airport Co. Ltd for modernization and operation of Ibrahim Nasir International Airport in 2010. But this contract was unilaterally terminated by the Maldives government which subsequently initiated arbitration proceedings on 29 November 2012, seeking a declaration that the concession agreement was void ab initio. GMIAL had disputed this termination. After detailed proceedings lasting more than 18 months, The Rt Hon Hoffman’s Tribunal has now issued an award. In a filing to the BSE, GMR Infrastructure said the tribunal declared that the concession agreement was valid and binding and “was not void for any mistake of law or discharged by frustration”. “Government of Maldives and Maldives Airport Co. Ltd are jointly and severally liable in damages to GMIAL for loss caused by wrongful repudiation of the agreement as per the concession agreement,” GMR Infrastructure said in a filing, citing the tribunal award.
    The foreign ministry in New Delhi confirmed that GMR has won its arbitration case against the government of Maldives for the premature termination of its airport development agreement in 2012.


    Read more here:
    GMR Infrastructure says Maldives airport concession pact valid - Livemint
     
  5. Ray

    Ray The Chairman Defence Professionals Moderator

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    And Modi has come to advise

    jab bachcha raat ko rota hai to maa kahti hai
    beta soja ..soja nahi to gabbar singh aa jaayega.
     
  6. rock127

    rock127 Maulana Rockullah Senior Member

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    Perhaps Maldives like these people to invest in their country and rule them... these people would have no legal, technical and economic issues at all.

    [​IMG]
     

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