Philippines SC upholds Award of Cebu Airport Modernization Project to GMR - Megawide Consortium
"GMR Male' International Airport Limited ( GMIAL) a subsidiary of GMR Infrastructure Limited had entered into a Concession Agreement with Government of Maldives (GaM) and Maldives Airport Company Limited (MACL) for modernization and operation of Ibrahim Nasir International Airport (INIA) in 2010. The said Concession Agreement was unlawfully repudiated by the Government of Maldives and Maldives Airport Company Limited on 29th November 2012 alleging that the same was void ab initio and initiated an international arbitration.
On 18th June 2014, the International Arbitral Tribunal constituted to adjudicate the said dispute, with its seat at Singapore, had issued its First Part Final Award holding that the Concession Agreement was valid and binding, Government of Maldives and Maldives Airports Company Limited had unlawfully repudiated the same and that they are jointly & severally liable in damages to GMIAL for loss caused by such wrongful repudiation.
By its Award dated 23rd February 2016, the said Tribunal has ruled that such damages payable by GoM and MACL to GMIAL will also include all the sums owed by GMIAL to the project lenders Axis Bank Singapore Pte Ltd. Under the Facility Agreement. The project debt covered by the aforesaid ruling as part of damages is besides the other damages/compensation payable by GoM and MACL to GMIAL in terms of the First Part Final Award. The quantum assessment of the entire damage/compensation payable by GoM and MACL is expected to be completed sometime around the end of the third quarter of CY2016.
About GMR Infrastructure Limited:
GMR Group is a leading global infrastructure conglomerate with interests in Airport, Energy, Transportation and Urban Infrastructure. The group has fifteen power generation projects of which ten are operational and five are under development; nine operating road assets and a double rail track line between Mughalsarai-New Bhaupur (Kanpur) of Eastern Dedicated Freight Corridor under development.
GMR Group developed and operates India’s busiest and currently World’s No1 Indira Gandhi International Airport in New Delhi and Greenfield Rajiv Gandhi international airport at Hyderabad. GMR Infrastructure in partnership with Megawide Construction Corporation is developing Mactan Cebu International Airport (MCIA) in Philippines. The Group is also developing two Special Investment Regions at Krishnagiri and Kakinada and India’s largest Smart Airport City near Hyderabad International Airport.
GMR Group, through its Corporate Social Responsibility arm, GMR Varalakshmi Foundation, carries out community-based development initiatives at 22 different locations in the areas of education; health, hygiene and sanitation; empowerment and livelihoods; and community development.
For further information about GMR Group, visit http://www.gmrgroup.in/index.html
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