Maldives Airports Company Limited (MACL) has provided a breather to the 1,800 employees working at the Ibrahim Nasir International Airport in Male. It has said after GMR’s exit from the project, expected by December 7, most of the staff would be employed by the company, directly under the government of Maldives.
According to information available, 95 per cent of the employees are citizens of Maldives, while the rest are expatriates. It is understood their work permits wouldn’t be extended after the deadline to GMR Infrastructure. GMR Group officials, however, maintained their case was strong, adding they hoped the decision would be in their favour.
GMR Infrastructure has operated the Ibrahim Nasir International Airport for about three years.
Early this week, the Maldives government had terminated a GMR Infrastructure-led consortium’s contract to upgrade the Male airport, saying the fact that GMR was charging $25 as airport development fee was against the law in that country. It is also probing the framework under which the contract was signed.
“The process to move the court in Singapore is underway and we should be filing the applications by Monday. Courts in Singapore are pretty fast and if a decision is taken, it will be in a day,” said a GMR Group spokesperson. The GMR Infrastructure-led consortium is working closely with employees to explain its stance. However, the Maldives government has said the decision to cancel the concessions agreement with GMR Infrastructure wouldn’t be reversed, adding MACL would continue with the operations.
GMR has maintained it has taken all measures to continue operations at the airport. “GMR understands the importance of tourism to the economy of Maldives and having been entrusted with the responsibility of operating and developing INIA (Ibrahim Nasir International Airport), we will discharge the duties to the fullest,” the company said in a statement. It added it was trying its best to ensure the safety of its employees and assets. “We are confident the stand of the company will be vindicated in every way,” it said.
GMR has said it spent about $240 million in the project through the past three years.
Analysts, however, indicated about half that amount was accounted for by the airport’s internal accruals which was reinvested; debt accounted for $90 million and $30 million was through equity. It is understood the government of Maldives might launch a probe into GMR’s investment into the project.
Today, the GMR stock closed at 18.65 per cent on the BSE, a rise of 4.5 per cent over its previous close.
