Male moves to end GMR airport pact

Nov 28, 2012 |

Age Correspondent

The Maldives on Tuesday decided to terminate the contract given to the GMR group for development and management of Male airport. The move drew sharp reactions from India and the GMR group.

The ministry of external affairs (MEA) said the decision, “without due consultation with the company or efforts at arbitration provided for under the agreement, sends a very negative signal to foreign investors and the international community”. India also asked the Maldivian government to take all steps to ensure that Indian interests are protected and also protect the security of Indian nationals. India said it was monitoring the situation closely and “is prepared to take all necessary measures to ensure the safety and security of its interests and its nationals in the Maldives”. The GMR Group said the move was “unilateral and completely irrational” and “unlawful and premature”. According to reports from Male citing a statement by the Maldivian President’s press secretary, the Maldivian Cabinet decided to terminate the contract and a notice to this effect was issued to GMR. The $500-million project was awarded when Mohamed Nasheed was President. Sources said the developments are an outcome of the tussle between the current Maldivian government and supporters of Mr Nasheed, who was removed from power.

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