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India : GMR Airports Submits Bid For New International Airport In Greece
Publish Date : 02-Nov-2016
GMR Male" International Airport Limited (GMIAL), a subsidiary of GMR Infrastructure Limited, today announced that it has been awarded compensation of approximately US$ 270 million by the 3 member international arbitral tribunal.
The compensation covers the debt, equity invested in the project along with a return of 17% and also termination payments and legal costs. The compensation is net of taxes that GMIAL may be required to pay in the Maldives.
GMIAL had entered into a Concession Agreement with Government of Maldives (GoM) and Maldives Airport Company Limited (MACL) for modernization and operation of Ibrahim Nasir International Airport (INIA) in 2010.
The Concession Agreement was wrongfully repudiated by the Government of Maldives and Maldives Airport Company Limited on 29th November 2012 alleging that the same was void ab initio. After detailed further proceedings, the tribunal has issued its final order whereby it has awarded compensation to GMIAL.
Commenting on the development, a GMR spokesperson said: It has always been our firm belief that the cancellation of concession agreement by Government of Maldives was wrongful. We are happy to note that the Tribunal has unequivocally upheld this stand and closed the adjudication with a final award of compensation. This award is a testimony to the high standards of conduct, corporate governance and commitment observed by GMR Group across all its businesses. It further endorses the immaculate track record of the Group in the airport business and its excellent reputation as a leading global airport developer and operator.
Earlier in June 2014, the arbitration tribunal had held that GoM and MACL had wrongfully repudiated the concession agreement of GMIAL and that they were jointly and severally liable in damages to GMIAL for loss caused.
