GMR seeks over $800 mn as compensation, Maldives insists on forensic audit

Dec 16 2012, 16:27 IST
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GMR seeks over $800 mn, Maldives insists on forensic audit. (Reuters) GMR seeks over $800 mn, Maldives insists on forensic audit. (Reuters)
Summary'We have sent a letter to the govt indicating a number of more than $800 million as compensation'

was signed under dubious conditions. We will in the future initiate a lot of infrastructure projects and GMR is welcome to bid for it."

However, sources in the know said that the "unlawful" termination of the contract sends a "negative signal" to foreign investors, a stand taken by Indian government too.

"It now feels that any contract signed with a particular regime can be scrapped when a new government comes in. It is a risky proposition," a source said.

Asked if Maldives will seek fresh bids for the modernisation and the operations of the airport, Imad said the cabinet has given the nod to set up a new company called

Maldives International Airport Limited that will takeover from MACL. However, he added the structure of MIAL is yet to be finalised.

Refuting the allegations that the move to terminate the contract was a political one to whip up emotions before the elections next year, Imad said, "Protests against the contract have been taking place since the first day it was signed by Nasheed. There were regular protests and marches happening".

He added, "We had a set of issues that needed to be looked into after we came to power. We are tackling them one by one and airport issue was one of them. We consulted reputed international law firms and they agreed with us that the contract was not valid. It is only then we terminated".

"The President has not even said if he might or might not run for Presidency. It is completely wrong to say that it was done for political mileage. We are only setting the wrong done by Nasheed right," he added.

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