GMR Infrastructure’s subsidiary - GMR Male International Airport (GMIAL), has been awarded compensation of approximately $270 million by the 3 member international arbitral tribunal. The compensation covers the debt, equity invested in the project along with a return of 17% and also termination payments and legal costs. The compensation is net of taxes that GMIAL may be required to pay in the Maldives.
GMIAL had entered into a Concession Agreement with Government of Maldives (GoM) and Maldives Airport Company (MACL) for modernization and operation of Ibrahim Nasir International Airport (INIA) in 2010.
The Concession Agreement was wrongfully repudiated by the Government of Maldives and Maldives Airport Company on November 29, 2012. After detailed further proceedings, the tribunal has issued its final order whereby it has awarded compensation to GMIAL.