The Maldives Government on Tuesday announced the cancellation of a contract with the India-based GMR Group regarding the development and management of Ibrahim Nasir International Airport (INIA), and asked the group to vacate the premises within seven days. The dispute with the GMR group, which signed the agreement in 2010 during the tenure of Mohamed [...]

The Sundaytimes Sri Lanka

Maldives cancels airport management agreement with Indian group

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The Maldives Government on Tuesday announced the cancellation of a contract with the India-based GMR Group regarding the development and management of Ibrahim Nasir International Airport (INIA), and asked the group to vacate the premises within seven days.

The dispute with the GMR group, which signed the agreement in 2010 during the tenure of Mohamed Nasheed as President to develop and manage the airport for 25 years, has been growing over the past few months.

The present administration led by President Moamed Washeed has raised irregularities in the contract.

The move drew condemnation from both India and (former) President Nasheed and triggered a fresh row between India and Maldives.

According to media reports, India said it was prepared to take all necessary measures to ensure the safety and security of its interests and its nationals in the Maldives.

Indian government has said that the cancellation of the GMR contract would send a very negative signal, according to Indian media reports.

“The GMR contract represents the single largest FDI in the history of Maldives and … the decision to terminate the contract 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,” media reports quoted an Indian government statement as saying.

The airport will be operated by Maldives Airports Company Limited (MACL).

GMR said the development violates the agreement it has with the Maldives Government. Both sides are planning arbitration.
In recent times, various pro-government politicians have accused India of meddling in local affairs, a charge strongly denied by India.

Former Presidential Spokesperson Abbas Adil Riza earlier this month triggered a diplomatic row after accusing the Indian high commissioner of interference.

The Maldives government immediately disassociated itself with the comments. Riza was later appointed as the Minister of State for Finance and Treasury.




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