Government terminates GMR agreement, gives 7 days to hand over airport

18:31 - The Attorney General said that this decision was made after consulting lawyers of UK and Singapore. She noted that this is not a political decision, rather, it is the termination of a business agreement.

18:28 - GMR has been notified that the agreement with the Maldivian government has been terminated, and to hand over the airport to the Maldivian government within seven days.

18:22 - Attorney General Aishath Azima Shakoor said that the decision to terminate the agreement was made after discussion today at a Cabinet meeting. She informed that the issue had been investigated by a Cabinet Committee over a period of nine months.

She said that GMR and Maldives Airports Company have been informed of the termination of the agreement.

Azima also said that the agreement was terminated from the day it was signed.

18:20 - Government has decided to terminate the agreement: Attorney General Aishath Azima Shakoor

The Cabinet has decided to terminate the agreement of Indian company GMR.

This has been confirmed by a government official.

This decision was made at a Cabinet meeting held today.

The contract with GMR was signed by the government of former President Mohamed Nasheed on 18 June 2010.

The government’s main reason for terminating the contract is that it receives no income from GMR due to the deduction of Airport Development Charge (ADC) from concession fees.

Meanwhile, a case on this agreement is in progress at Singapore’s Arbitration Court.

GMR has said that $511 million will be spent on the development of the airport, inclusive of a new terminal.

The operation of Male’ International Airport was given to GMR for 25 years.

Passenger traffic at Male’ Airport is about one million every year, including tourists and other passengers. This means that GMR would collect $675 million in 25 years, if it continues to collect $27 per passenger as ADC.

The cargo and ground handling of the airport, which was previously managed by Island Aviation, were also handed over to GMR under the agreement.

CEO of GMR Andrew Harrison said moments ago that the company has not yet been notified to terminate the agreement.