GMR Male International Airport Limited (GMIAL), a subsidiary of construction firm GMR, has been awarded approximately US$270m in compensation following the improper cancellation of a concessions agreement for the modernization and operation of Ibrahim Nasir International Airport in the Maldives.
The tribunal found that the concession agreement between GMR, the Maldives government and the Maldives Airport Company (MAC), was wrongfully repudiated on November 29, 2012, after the government alleged that the agreement was void ab initio. After detailed further proceedings, the tribunal has issued its final order whereby it has awarded compensation to GMIAL. The compensation covers the debt, equity invested in the project along with a return of 17% and also termination payments and legal costs.
A GMR spokesperson said, “It has always been our firm belief that the cancellation of concession agreement by the government of the 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. This award is a testimony to the high standards of conduct, corporate governance and commitment observed by GMR Group across all its businesses. It further endorses the immaculate track record of the group in the airport business and its excellent reputation as a leading global airport developer and operator.”