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India reacts to Maldives' decision to scrap GMR project

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In response to questions on the decision of the government of Maldives to terminate the airport development  agreement with the GMR Group, the official spokesman of India's Ministry of External Affairs conveyed the following:

We have noted the decision by the Government of Maldives to terminate the agreement with the GMR Group to manage the Male International Airport.  It would be recalled that the consortium consisting of GMR and MAHB (Malaysian Airport Authority) had been awarded the contract to manage the Male International Airport concession through a global tender conducted by the International Finance Corporation (IFC), Washington, a member of the World Bank.  As the Advisor to the Government of Maldives, the IFC has stated that it has complied with Maldivian laws and regulations and followed international best practices at each step of the bidding process to ensure the highest degree of competitiveness, transparency and credibility of the process.

The investment by GMR represents the single largest foreign direct investment in the history of Maldives. The decision to terminate the contract with GMR without due consultation with the company or efforts at arbitration provided for under the agreement sends a very negative signal to foreign investors and the international community.  The Government of India would continue to remain engaged with the Government of Maldives on this issue, and would expect that the Government of Maldives would fulfil all legal processes and requirements in accordance with the relevant contracts and agreement it has concluded with GMR in this regard.

We call upon the Government of Maldives and all concerned parties to ensure that Indian interests in Maldives and the security of Indian nationals are fully protected.  The Government of India proposes to monitor the situation in Maldives closely and is prepared to take all necessary measures to ensure the safety and security of its interests and its nationals in the Maldives. The Government of India will continue to be seized of the matter.

Story first published on: November 27, 2012 21:50 (IST)


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