Won

GMR has said that it will not comply with the Maldivian government’s notice to terminate the agreement, and that it will continue with airport development efforts until the end date of the agreement.

Head of Corporate Communications of GMR, Arun Bhagat said in an interview with Sun Online last night that the government cannot take any action against GMR while the case on Airport Development Charge (ADC) is in arbitration in Singapore, and that efforts are under way to take the necessary legal action against being sent a notice to terminate the contract.

He informed that about 800 Maldivian employees work for GMR, and that they have been advised not to be dismayed by this notice. He expressed confidence that this will not affect services and operations.

The Cabinet decided yesterday to terminate the agreement with GMR as the agreement results in losses to the Maldivian government. GMR was given seven days to hand over the airport, and thirty days to vacate and remove their property.

Referring to this decision, Arun Bhagat said that GMR’s total investment in the Maldives is worth $511 million, which is half of the Maldives’ Gross Domestic Product (GDP).

He said that this decision gives foreign investors a very bad message.

He said that discussions will be held with Maldives Airports Company Limited (MACL) to determine how this happened, and that GMR is investigating the notice sent by the government.

The Indian government said in a statement following this notice, that it is will take all necessary steps to ensure the safety and security of its interests and its nationals in the Maldives.