Government: Maldives owes USD 250 mn to GMR

Singapore International Arbitration Centre (SIAC) has ruled that Maldivian government owes approximately USD 250 million in compensation to Indian company, GMR, over termination of contract to run Ibrahim Nasir International Airport (INIA).

In a press conference held at President’s Office this Thursday, Attorney General of Maldives, Mohamed Anil said that SIAC had made its decision and released its report on October 25.

Anil said that the report was shared with Maldivian government last Wednesday night.

He said that SIAC had ruled GMR was owed USD 204 million for termination of contract, but a total of approximately USD 250 million after adding in the interest.

GMR had asked for USD 1.4 billion in compensation.

Maldivian government terminated its contract with GMR on November 27, 2016, during Dr. Mohamed Waheed Hassan Manik’s presidency after an audit regarding the contract’s monetary, legal and national security implications.

Anil said the audit uncovered conflicts of interest and violations of the rights of government and Maldives Airports Company Limited (MACL) arising from unseemly reliance on GMR.

Anil said that the amount of compensation was USD 800 million less than which was estimated by the opposition, falling closer to USD 300 million estimated by President Abdulla Yameen Abdul Gayoom.