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GMR Infrastructure Ltd today said the Singapore-based International Arbitral Tribunal has issued a ruling stating the Maldives government and Maldives Airports Co are liable to compensate it for the loan granted by the Axis Bank-led consortium for the Male airport modernisation project.
The diversified GMR Infrastructure Ltd, through its subsidiary GMR Male International Airport Ltd, had won a mandate for the modernisation of the Ibrahim Nasir International Airport in Male in 2010. However, after the change of government in 2012, Maldives scrapped the project and initiated an international arbitration.
On Tuesday the tribunal ruled that the damages payable to GMR Male International Airport include the amount owed by the company to the project lenders led by Axis Bank Singapore Pte Ltd, GMR Infra said in a statement to BSE.
On June 18, 2014, in its first order, the International Arbitral Tribunal had said the Male airport concession agreement was valid and binding, the Maldives government and Maldives Airports Co had unlawfully scrapped the same, and that they are jointly liable to pay damages.
The company further said the project debt covered by the damages was besides the other damages/ compensation payable to GMIAL. The quantum assessment of the entire damage/ compensation payable by the Maldives government and Maldives Airports Co is expected to be completed in the third quarter of 2016.
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