GMR To Get $270 Million Compensation From Maldivian Government
GMR to be compensated for termination of Male airport contract
- GMR Infrastructure unit wins arbitration against Maldives government.
- Company to get $270 million as compensation.
- Stock rises 5.9 percent intraday, the most since October 26.
GMR Male International Airport Ltd., subsidiary of GMR Infrastructure Ltd., has won the arbitration against the Government of Maldives over the cancellation of airport development contract by the Maldives government in November 2012, the company said in a statement.
The company has been awarded a compensation of approximately $270 million by a three-member international arbitral tribunal, it said in a press release.
GMIAL had entered into a concession agreement with the Government of Maldives and Maldives Airport Company Ltd. in 2010 for "modernization and operation" of the Ibrahim Nasir International Airport. The two Maldivian organisations in November, 2012 claimed that the agreement was void right from the start.
The Concession Agreement was wrongfully repudiated by the Government of Maldives and Maldives Airport Company Limited on November 29, 2012 alleging that the same was void ab initio. After detailed further proceedings, the tribunal has issued its final order whereby it has awarded compensation to GMIAL.GMR Infrastructure Press Release
In June 2014, the Singapore-based tribunal had ruled in favour of GMAIL, holding the two Maldivian bodies of wrongfully repudiating the concession agreement and making them jointly liable for damages to GMIAL for the loss caused. The final order, with the compensation amount was delivered today.
GMR said they had always held that the refusal to acknowledge the concession agreement was wrongful.
It has always been our firm belief that the cancellation of concession agreement by Government of 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.GMR Spokesperson