Maldives government has been ordered to pay USD 250 million to Indian infrastructural company GMR by a 3-member Singaporean Arbitration Tribunal in its final order over illegal termination of contract to run Ibrahim Nasir International Airport (INIA).
The court ordered government to pay USD 208 million in damages with interest which amounted to approximately USD 250 million, Maldives Attorney General Mohamed Anil was quoted as saying by the Sun Online.
Maldivian government under the then President Mohamed Waheed terminated USD 500 million GMR contract on November 27, 2012 alleging legal and national security implications following which the company moved a plea to the international tribunal for award of damages and loss of reputation due to abrupt termination of the contract.
GMR had won the contract for 25 years through competitive global bidding process and the agreement was signed on June 28, 2010 under ex-President Mohamed Nasheed’s government.
Problems for GMR began when it decided to levy USD 27 for Airport Development Charge (ADC) and insurance charge, which was struck down by a civil court. The company had called the decision “unlawful and premature” and said the notice was devoid of any locus standi, as quoted by The Hindu.