Government of Maldives to terminate GMR Group's agreement
The government of Maldives today decided to terminate the agreement between the GMR Group of India and Malaysia Airports Berhad (MAHB) to further develop the airport near Male’.
The press release issued by the GMR Group is given below:
In a unilateral and completely irrational move the Government of Maldives [GoM] has today issued a notice to the GMR Male’ International Airport Ltd [GMIAL] intending to take over the possession and control of the Ibrahim Nassir International Airport [INIA] under the pretext that the Agreement is void. This unlawful & premature notice on the pretext that the Concession Agreement [CA] is ‘void’ is completely devoid of any locus standi and is therefore being challenged by the Company before the competent forums. The Company disputes that the CA is ‘void’.
The Company would further like to state that it has taken all measures to continue operations at the Ibrahim Nassir International Airport [INIA] thereby ensuring that this vital gateway to Maldives is kept open. The Company understands the importance of tourism to the economy of Maldives and having been entrusted the responsibility of operating & developing the INIA; will discharge its duties to the fullest.
We would also like to inform all that this action by the GoM is in complete disregard of and has been done during the pendency of Arbitration proceedings in the designated Tribunal in Singapore.
We are therefore taking all measures to ensure the safety of our employees and safeguard our assets. We are confident that the stand of the Company will be vindicated in every way.
About GMIAL
GMR Male’ International Airport Pvt. Ltd. (GMIAL) is a joint venture company comprising GMR Infrastructure Limited (GIL) (77%) and Malaysia Airports Holding Berhad (MAHB) ( 23%). In 2010, GMIAL won the right to build and operate the Ibrahim Nasir International Airport (INIA) for 25 years, which is extendable by another 10 years. Our plan envisages to develop a (0.6 million sq feet) state-of-the-art integrated world class passenger terminal increasing the terminal capacity to handle 5.5 mn passengers pa and a (20,000 sq feet) VIP terminal, apart from landside development and improving existing terminal, to enhance passenger comfort and services. Situated on Hulhule Island in the Maldives at the South western tip of India, INIA is one of the fastest growing airports in the region.
