The Maldives has to pay a compensation of about $300 million to India's GMR for the premature termination of the agreement to develop the Maldives main international airport, President Abdulla Yameen Abdul Gayoom said on Saturday.
The president's comments come a day after GMR officials said that it stood by its compensation claim of $1.4 billion from the Maldives.
After returning to Male from Singapore, the president told local reporters at the airport that the Maldivian government could terminate the contract as it "damaged state and national interests". But since GMR had carried out some of the development works at the airport, the government has to pay compensation, he said.
"I doubt whether [the arbitrators] would decide to include, in the compensation payment, GMR's projected profit by running the airport for 25 years. … We believe that the compensation would amount to about $300 million or less," the president said.
President Yameen stressed that the compensation payment would affect the state budget, but added that $300 million is a "manageable" sum. The state owned Maldives Airports Company Limited (MACL), which now runs the airport, is "saving up" that sum, he said.
The president's comments come a day after GMR officials said it stood by its compensation claim of $1.4 billion from the Maldives.
27/04/14 Ahmed Naif/Haveeru Online
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The president's comments come a day after GMR officials said that it stood by its compensation claim of $1.4 billion from the Maldives.
After returning to Male from Singapore, the president told local reporters at the airport that the Maldivian government could terminate the contract as it "damaged state and national interests". But since GMR had carried out some of the development works at the airport, the government has to pay compensation, he said.
"I doubt whether [the arbitrators] would decide to include, in the compensation payment, GMR's projected profit by running the airport for 25 years. … We believe that the compensation would amount to about $300 million or less," the president said.
President Yameen stressed that the compensation payment would affect the state budget, but added that $300 million is a "manageable" sum. The state owned Maldives Airports Company Limited (MACL), which now runs the airport, is "saving up" that sum, he said.
The president's comments come a day after GMR officials said it stood by its compensation claim of $1.4 billion from the Maldives.
27/04/14 Ahmed Naif/Haveeru Online
