In Maldives

Group 5
Party

Maldive Government GMRIL : A joint venture of GMR (70% ) and

Malysia Airport Holding Berhad (30%)
 Event
2010 : GMR entered into a 25 yr concession
agreement worth 500 million USD for develop
and operate of Airport in MAL
Every passenger will be charged 25$ USD as ADC
Dispute resolution through arbitration according
to UK or Signapore law
2012 : Changes of President.
In Feb’22 Waheed become President
replacing Nasheed
New leadership asked GMR to temporally halt
the terminal development work
This work started in 2011 and supposed to
complete in 2014
Dispute

As per new government , ADC (25$) is not approved and hence it is illegal

On this ground of illegality , Govt. declared this concession agreement as Void

ab initio on 27 Nov, 2012.

On the same day, GMR stated through press release that they are not agree
with this decision and will continuing the operation. Further to that , they will
refer to Arbitation proceeding in the designated Tribunal in Signapore .
 Dispute and Resolution

On 3 Dec,2012 Singapore high
court granted an injunction in
favor of GMR and ordered
Maldive government not to
interfere in the working of GMR
After this order , GMR stated through
a press release , they will continue to
operate and modernize the airport as
they won this bid through an
interanion bidding process ,conducted
by IFC an arm of World Bank.
Gov. of Maldives was adamant to
terminate the concession
agreement and asked GMR to
handover the airport by 7 August.
Govt. would pay damages as
decided on arbitration
proceeding.
Dispute and Resolution

• Maldive Govt. argued that the concession agreement is void and no question of grant
of an injunction. Also the high court judge incorrectly interpreted the law as court
can not issue such an injuction against an sovereign state.
• Maldive Govt. appealed to Singapore Court of Appeal ,the highest court.
• On 6 Dec-2012, chief justice of Singapore gave decision in favor of Maldive Govt.
Arbitration Process

• Govt of Maldives and an Indian company GMR fought in Singapore court as it was agreed
on arbitration clause which mentioned Singapore as seat of arbitration .
• According to Singapore law, such arbitration has to be supervised by Singapore court.
POST HANDING OVER

After the high court order, GMR prepared a claim over 800 million USD , which be decided in
Singapore Arbitration .

Maldive Govt. denied the claim and planned for a forensic audit to check how much money
was poured by GMR.

President Waheed addressed to the nation after forcing GMR to handover the airport
project .This was bad decision of previous govt. This airport is a very important gate way to
Maldive and leasing to a foreign country for a long time , will make revenue loss to Maldives.
The final
Claim
What GMR • For a long lease project , they need to better
understand the Geo Political movement of
should have the country.
been • Any adverse effect of Govt. changes must be
checked assessed.
Thank You