GMR Male International Airport Ltd (GMIAL), a unit of GMR Infrastructure, had entered into a concession agreement with the government of Maldives and Maldives Airport Co. for modernisation and operation of Ibrahim Nasir International Airport in 2010.
The contract was unilaterally terminated by the Maldives government, which initiated arbitration proceedings on November 29, 2012, seeking a declaration that the concession agreement was void ab initio, GMR said in a statement today.
"Government of Maldives and Maldives Airport Co. Ltd are jointly and severely liable in damages to GMIAL for loss caused by wrongful repudiation of the agreement as per the concession agreement," GMR Infrastructure said in the filing, citing the arbitration awarded by Rt Hon Lord Hoffman's Tribunal.
The concession agreement was valid and binding and was not void and the collection of airport development charges and insurance surcharge, as allowed in the concession agreement, was lawful under Maldivian law, GMR cited the tribunal as saying.
The agreement to adjust the shortfall arising out of non-collection of airport development charges and insurance surcharge from the concession fee was lawful and binding on the Maldives Airport Company and Maldivian government, GMR said, quoting the award.