Decision to deduct $25 has been cancelled, that money should be received: MACL

Maldives Airports Company Limited (MACL) has said that GMR has been sent letters repeatedly to inform that the agreement with the former government to deduct insurance surcharge and Airport Development Charge (ADC) of $25 from the money owed to the government has been cancelled.

Managing Director of MACL Mohamed Ibrahim told Sun Online today that no response has been received from GMR so far.

“We believe we should receive that money. That’s why we published that information yesterday. We have sent them more than one letter. But they made the payment with the deduction,” Mohamed Ibrahim said.

GMR owes the government $8.7m for the first quarter of 2012. However MACL received only $525,355 after the deduction of $25 ADC and $2 insurance surcharge.

GMR cannot charge ADC and insurance surcharge following a Civil Court ruling last year.

He further said that GMR had not requested to discuss the issue of concession fee. MACL alone cannot resolve the issue, and is currently discussing it with the government.

“This company is owned by the government 100 percent. We have to discuss this issue with the government, so that’s the process we are following,” Mohamed Ibrahim said.

The airport was leased to GMR for a period of 25 years in 2010. For GMR, Male’ airport is the most profitable, with revenue for the last quarter being $49.1m and profit being $4.6m.