Cancellation of GMR's $500 Mn Maldives Airport Proj Stayed
Bangalore: In a reprieve to Indian infrastructure major GMR, the Singapore High Court stayed the Maldives Government's decision to terminate the $500 million contract awarded to a consortium led by it for modernising the Male international airport.
The move is likely to pave way for the GMR to continue operations at Ibrahim Nasir International Airport (INIA) in Maldives.
"GMR Male’ International Airport (GMIAL) is pleased to advise that the High Court of Singapore has today granted injunctive relief against the applicability and operations of Letter dated November, 27 issued by the Ministry of Finance & Treasury (MoFT), Government of Male," GMR Infrastructure said in a statement.
As per the contract in the project, in case of differences between various parties, the law of either Singapore or U.K. would apply.
The statement said the High Court upon hearing both the parties granted the stay in favour of GMIAL, a joint venture company in which GMR Infrastructure (GIL) has 77 per cent stake and Malaysia Airports Holding Berhad (MAHB) the remaining 23 per cent stake.
"Both Maldivian Airport Company Limited (MACL) and MoFT, pursuant to the notice issued on 27th Nov 2012 either directly or indirectly, are not allowed to interfere with the rights of the Investor (GMR-MAHB consortium) under the concession agreement," the statement said.
With this, GMIAL shall continue to operate the INIA airport as usual as per the provisions of the Concession Agreement, it added.
The MACL, based on the directions of the new Maldivian government, had on November 27 terminated the contract given to GMR in 2010 during the previous regime of President Mohamed Nasheed.
Maldivian President Mohamed Waheed had said the contract was invalid and was signed under "dubious" conditions by the Nasheed regime.
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