GMR Male International Airport Limited (GMIAL), a subsidiary of GMR Infrastructure Limited, today announced it has been awarded compensation of $ 270 million by the 3 member international arbitral tribunal.
The compensation covers the debt, equity invested in the project along with a return of 17 per cent and also termination payments and legal costs.
The compensation is net of taxes that GMIAL may be required to pay in the Maldives.
It may be recalled GMIAL had entered into a Concession Agreement with the Maldives Government and Maldives Airport Company Limited (MACL) for modernisation and operation of Ibrahim Nasir International Airport (INIA) in 2010.
The Concession Agreement was wrongfully repudiated by the Maldives Government 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.
A GMR spokesperson in a statement 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. This award is a testimony to the high standards of conduct, corporate governance and commitment observed by GMR Group across all its businesses. It further endorses the immaculate track record of the Group in the airport business and its excellent reputation as a leading global airport developer and operator.”
Earlier in June 2014, the arbitration tribunal had held that concession agreement was wrongfully repudiated and they were jointly and severally liable in damages to GMIAL for loss caused.