GMR Male International Airport (GMIAL) on Thursday announced that it has been awarded a compensation of approximately $270 million by a three-member international arbitral tribunal.
The company had challenged the cancellation of its concession agreement to modernise and operate the Ibrahim Nasir International Airport (INIA) located in Male, Maldives.
According to the GMR Infrastructure's subsidiary, the compensation covers debt and equity invested in the project along with a return of 17 per cent and also termination payments and legal costs.
"It has always been our firm belief that the cancellation of concession agreement by the Government of Maldives was wrongful," a GMR spokesperson was quoted in a statement as saying.
"We are happy to note that the Tribunal has unequivocally upheld this stand and closed the adjudication with a final award of compensation."
The company elaborated that the compensation is net of taxes that GMIAL may be required to pay in the Maldives.
GMIAL had in 2010 entered into a concession agreement with the Government of Maldives (GoM) and Maldives Airport Company Limited (MACL) for modernisation and operation of INIA.
The concession agreement was repudiated by the GoM and MACL on November 29, 2012 alleging that the same was void ab initio.
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.
--IANS
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