Not easy to annul the GMR agreement: President

President Dr Mohamed Waheed Hassan Manik has said that even though the agreement made with GMR results in losses for the Maldivian government, annulling the agreement would not be easy given the State’s current financial situation.

In a letter sent to government coalition parties today, the President said that the losses incurred by the government are much greater than the income received during the period of the agreement.

He said that GMR’s development of the airport is more expensive than estimated in the Stock Wilson master plan but achieves much less; and thus, he does not believe that the agreement should be continued.

“The Maldivian economy is likely to suffer great losses due to this agreement. The President does not believe that the agreement can be sustained and continued as it is. In spite of this, annulling the agreement will result in having to pay a large sum as compensation, and this is also not possible considering the State’s current financial situation,” says the letter signed by Policy Secretary Ismail Shareef on behalf of the President.

The two-page letter also says that the government’s actions in relation to the agreement could result in the loss of foreign investors’ confidence in the Maldives.

“The President believes that the close relations between Maldives and India should be considered before deciding to take any action against the agreement. As such, the President has requested for your advice to the government on this matter,” says the letter.

The President’s letter follows the announcement by several coalition parties yesterday, of commencement of efforts to reclaim the airport from GMR.

The parties had called on the government to immediately annul the agreement made with GMR, and resolve any conflicts by taking them to Court.

Government Spokesperson Abbas Adil Riza said today that some political parties ‘lied’ about the letter sent by the President today, and stressed that the President had not yet made a decision on this matter.

He said that the President will not take any action before holding discussions with political parties.

Attorney General Aishath Azima Shakoor has said that the government will be liable to pay a compensation of $700 million in the event that the agreement is annulled. She has also said that the government has a good chance of winning the case filed to Court by GMR.