The Maldivian government considered buying out the 2010 airport development contract from India’s GMR, but lacking the necessary funds declared the agreement invalid, Minivan News can exclusively reveal.
The Maldives is now facing a payout to GMR, potentially as high as US$803 million or over half of the state budget, after a Singaporean tribunal last year ruled that the agreement was valid and binding.
The government, however, expects the compensation claim to amount to US$300 million. The exact figure is yet to be determined by the tribunal.
Testimony by cabinet ministers and airport company officials – in a separate arbitration between the government and an Indian bank over the airport deal – show that ex-president Dr Mohamed Waheed Hassan asked his cabinet to estimate the sum required to buy out the concession agreement from GMR.
Minivan News has obtained the opening submissions by the government and the Axis Bank made in February and March, respectively.
22/04/15 Zaheena Rasheed/Minivan news
The Maldives is now facing a payout to GMR, potentially as high as US$803 million or over half of the state budget, after a Singaporean tribunal last year ruled that the agreement was valid and binding.
The government, however, expects the compensation claim to amount to US$300 million. The exact figure is yet to be determined by the tribunal.
Testimony by cabinet ministers and airport company officials – in a separate arbitration between the government and an Indian bank over the airport deal – show that ex-president Dr Mohamed Waheed Hassan asked his cabinet to estimate the sum required to buy out the concession agreement from GMR.
Minivan News has obtained the opening submissions by the government and the Axis Bank made in February and March, respectively.
22/04/15 Zaheena Rasheed/Minivan news
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