Compensation sought by GMR too high: President

President Abdulla Yameen Abdul Gayoom has said that the compensation sought by GMR Group is too high.

The Indian infrastructure giant in seeking a staggering $1.4 billion (MVR 21.5 billion) in compensation from the Maldivian government for prematurely annulling the agreement to develop and manage the Ibrahim Nasir International Airport (INIA).

Speaking to the press before leaving on an official visit to Japan on Sunday, President Yameen said the government does not believe that it owes such a large amount.

“GMR is asking for a very large compensation. The government does not believe that we can, or should, grant such a large compensation. Our (financial) values do not match,” President Yameen said.

If necessary, the government will hold further discussions GMR after the arbitration process, the President said. He has also earlier said that the government believes that the compensation should be a financial settlement.

The termination of the airport development agreement is currently in arbitration in a court in Singapore.