Maldivian government cancels GMR contract for international airport
The government of Maldives has cancelled the contract of GMR Group for developing international airport in the country and as has asked the company to leave within one week.
The government scrapped the 511 million deal, which is the biggest foreign investment project, raising serious concerns over the future for foreign investment in the island nation. According o some sources, the reason behind cancellation of the deal was due to the failure of President Mohamed Waheed to renegotiate terms of the deal with the Indian company.
GMR, which is a unit of Bangalore-based GMR Infrastructure, now has only seven days to leave the island nation. The development has raised concerns over the protection of foreign investment in the country. The country is inviting foreign investment in tourism projects but the decision of the government to throw out the country will deter some investment into the country.
Imad Masood, the president's spokesman said, "It is cancelled by the cabinet on the instructions of the president. It was not a valid agreement."
GMR has responded by saying the cabinet's decision was "unilateral and completely irrational" as the case is still pending at the Singapore High Court.