Published On:November 22 2014
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Male airport: GMR wants $803 m from Maldives.
GMR Male International Airport Private Ltd. (GMIPL) has filed a claim for $803 million (Rs. 4,987 crore) in damages from the Maldives and Male Airports Company Ltd. (MACL) over the 'wrongful' cancellation of a concession agreement for the Male International Airport.
GMIAL, a subsidiary of GMR Infrastructure Ltd., had inked a concession agreement with the Government of Maldives and Maldives Airport Company Ltd. for modernisation and operation of the Ibrahim Nasir International Airport, Male, in 2010.
On November 29, 2012, the Maldives Government and MACL initiated arbitration proceedings seeking a declaration that the concession agreement was invalid from the outset (void ab initio).
The Arbitral Tribunal, in its ruling on June 18 this year, declared that the concession agreement was valid and binding and that the Maldives Government and MACL were jointly and severally liable to GMIAL for the loss caused by their wrongful repudiation of the concession agreement.
After the ruling, GMIAL has submitted its claim for damages amounting to $803 million and sought further damages for loss of reputation as a consequence of wrongful cancellation of the agreement. The quantification of damages is subject to expert evidence, said the company.
GMR said that while the arbitration proceedings are private and confidential, it is disclosing the information in conformity with regulatory requirements.
Having made significant investments in the project, GMR has been pressing for compensation for the wrongful cancellation of the contract.