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Nasheed terms government xenophobic, GMR
says not leaving
Thursday November 29, 2012 08:50:34 AM,
IANS
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Related Article |
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Maldives scraps GMR contract, India reacts
sharply
The Maldives cabinet Tuesday annulled the agreement made with GMR
Group to operate the Ibrahim Nasir International Airport (INIA),
at Hulhule Island nearby capital Male, Maldivian President's Press
Secretary Masood Imad said. » |
Male: Indian
infrastructure giant GMR has described as "illegitimate" an order
by the Maldives government to hand over the Male airport within
seven days after its contract was annulled, and insisted the
company will not leave the Indian Ocean archipelago nation.
Former president Mohamed Nasheed Wednesday said the government of
President Mohamed Waheed Hassan Manik used xenophobia, nationalism
and religious extremism to attack GMR and annul the agreement.
Reacting to the government's decision to annul the agreement to
manage the Ibrahim Nasir international airport, Nasheed told
Haveeru online: "This decision is bad for tourism, bad for the
economy and bad for the Maldivian people."
The government Tuesday decided to terminate the agreement signed
in June 2010 between GMR-MAHB Consortium, Maldives Airports
Company Ltd., and the government of the Maldives, to lease the
Ibrahim Nasir International Airport in Male to GMR for 25 years.
On the cabinet's decision to annul the agreement, GMR head of
communication Arun Baghad told Haveeru Online he refused to accept
that the government can terminate the agreement after just two
years into the 25-year contract.
Despite the seven-day notice given by the government to hand over
the airport, GMR would look to honour the agreement and stay in
the Maldives till the end of the 25-year contract, Baghad said.
"We are going nowhere. A solution to the matter will be sought
out," he was quoted as saying.
Baghad said the decision to annul the agreement was conveyed to
GMR during a press conference held by Attorney General Aishath
Azima Shakoor Tuesday evening.
He alleged that the government had failed to give a hint of its
decision or hold discussions to find an amicable solution to the
issue.
"We received the document after the press conference. We will hold
talks in relation to this matter. We hope that a solution
beneficial to GMR will be found," Baghad said.
India Tuesday said the Maldives government's decision to cancel
the GMR contract would send "a very negative signal to foreign
investors and the international community".
It also asked the Indian Ocean archipelago nation to ensure that
Indian interests in the Maldives and the security of Indian
nationals in that country "are fully protected".
The agreement was signed during the regime of then president
Mohamed Nasheed. The $500-million project was hanging in balance
ever since the regime change in the Maldives earlier this year.
After a civil court in the Maldives ruled that GMR cannot claim
$27 from passengers as Airport Development Charge and insurance
surcharge, the Indian firm had taken the case to Singapore for
arbitration.
GMR was deducting $27 from each passenger since January.
The opposition Maldivian Democratic Party (MDP) has called on GMR
to ignore the decision taken by the government to annul the
agreement.
Former president Nasheed accused the government of using
xenophobia against the country's largest foreign investor.
"This will put off potential investors for decades. Waheed is
leading the Maldives down the path to economic ruin," Nasheed told
Haveeru Online.
The MDP issued a statement in which it refused to accept the
decision taken by the cabinet to declare the contract as void. The
MDP warned of repercussions to the state, people and the economy
if the agreement is terminated without arbitration.
"This party calls on GMR to remain within the contours of the
contract until the agreement is terminated on the terms stipulated
in the contract. GMR must remain steadfast in running of the
airport. MDP is calling on GMR to ignore an order made by an
illegitimate government," the MDP statement read.
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