Maldives to pay Indian firm at least US$250m in damages for cancelling airport deal
Indian infrastructure firm, GMR, has won at least US$250million in damages from the Maldivian government for abruptly cancelling a lucrative contract to develop and manage the country’s main airport
28 Oct 2016, 9:00 AM
Indian infrastructure firm, GMR, has won at least US$250million in damages from the Maldivian government for abruptly cancelling a lucrative contract to develop and manage the country’s main airport.
GMR said the award, which brings to an end a four-year legal battle, includes the debt, equity invested in the project along with a return of 17percent, and termination and legal costs.
The award, announced Wednesday, will amount to approximately US$270million, the firm said. But Attorney General Mohamed Anil estimated the figure to be US$250million, an amount far less than the GMR’s initial claim of US$1.4billion. The firm later revised the claim to US$803million.
Anil said the government and the state-owned Maldives Airport Company Ltd are currently in talks with GMR on making the payment. He refused to take questions from reporters citing “the confidential nature of arbitration proceedings.”
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