GMR Male International Airport Limited (GMIAL), a subsidiary of GMR Infrastructure Limited, said in a statement on Thursday that it has been awarded compensation of nearly $270 million by a three-member international arbitral tribunal.
The compensation covers the debt, equity invested in the project along with a return of 17% and also termination payments and legal costs. The compensation is net of taxes that GMIAL may be required to pay in the Maldives, it said.
GMIAL had entered into a concession agreement with government of Maldives and Maldives Airport Company Limited (MACL) for modernisation and operation of Ibrahim Nasir International Airport (INIA) in 2010.
According to GMR, “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.
Commenting on the development, a GMR spokesperson said: “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”.
Earlier in June 2014, the arbitration tribunal had held that GoM and MACL had wrongfully repudiated the concession agreement of GMIAL and that they were jointly and severally liable in damages to GMIAL for loss caused, the statement said.