GMR

Male International Airport

Introduction
GMR : GMR Group is a infrastructural company headquartered in Bangalore. The company was founded in 1978 by Grandhi Mallikarjuna Rao. The Group has projects in several countries including Turkey, South Africa, Indonesia, Singapore and the Maldives. Male international airport : Mal International Airport, previously known as Hulhul Airport, is the main international airport in the Maldives. It is located on Hulhul Island in the North Mal Atoll, nearby the capital island Mal.

Male International Airport Bidding on 20th June 2010

Male International Airport up for Bidding. Six consortiums GMR+MAHB, Reliance +ASA, Zurich+GVK, ADPe, TAV, Vienna+SNC Lavlin were pre-qualified to participate in the bidding process. Three bidders GMR+MAHB, Zurich + GVK and TAV+ADPe submitted the bids from whom the final bidder was chosen. GMR+MAHB was finally chosen.

GMR Contract
In June 2010, the Maldives government, the Maldives Airports Company Limited (MACL) and GMR-MAHB Consortium signed a tripartite concession agreement to develop and run the Ibrahim Nasir International Airport at Mal, the capital of the island nation.

CONSEQUENCES
Sweet deal Favoring GMR. GMR-MAHB joint venture's decision to impose an Airport Development Charges (ADC) of $25 per departing passenger turned a bone of contention between the company and Maldives government with change in regime in Maldives in February this year. Many opportunities for GMR around the world.

GMR BLEEDING ON HIGH LEVERAGE

After the contract was signed, the Maldives government changed. President Nasheed was replaced by President Waheed in a coup. This government claimed the contract was invalid. GMR going to loose there investment of $551 million in the Ibrahim Nasir International Airport at Male amount to almost 40% of Maldivian economy.

Maldivian Govt.
Singapore courts judgment does not prevent the cancellation of the contract if compensation is given.

UK lawyers said where compensation is adequate, an injection can not be issued.

Maldives said GMIAL was looking at a compensation of $550 million.

Maldives Govt. DECISION

Cancel the contract after MACl communicated to it that it might go bankrupt if it had to pay in liue of the airport development charges. It is the second major global project that the bangalore-based company is losing out on. During late november 2010 exactly two years ago

Presented By:
Arjun Arpit Kakar Ashish Khare Bikram singh

Ajay Patidar
Adarsh prohit