Maldives issues notice to GMR for terminating airport contract

Nov 27, 2012 |

New Delhi/Male

Tags:

GMR
Maldives

Thingstosee_Male_Airport_l.jpg.crop_display.jpg

Maldives on Tuesday said its cabinet has recommended termination of a contract given to GMR Group for developing Male Airport, a project awarded to the Indian group during the previous regime of island nation.

The Maldives cabinet in a meeting on Tuesday decided to terminate the contract and a notice to this effect was issued to GMR Group, Maldivian President's Press Secretary Masood Imad said in a statement.

The USD 500-million project was hanging in balance ever since the regime change in Maldives earlier this year. The GMR group had won the contract during the regime of former President Mohamed Nasheed.

Some coalition partners of the current regime headed by Mohamed Waheed had also held a rally against GMR on November 3.

The airport contract was awarded to GMR through a 10-month long global competitive bidding process run by the then Maldivian government headed by Nasheed.

Nearly eight months after the regime change in Maldives, some Indian companies present there, including GMR, are blaming political interference for creating "undue challenges" for them.

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