Maldives may even annul GMR deal: President Waheed

With GMR's USD 500-million Male airport project hanging in the balance, Maldives President Mohamed Waheed on Friday said he was discussing the issue with all stakeholders and is even open to the option of annulling the deal with the Indian firm.

GMR had won the airport contract during the government of Waheed's predecessor Mohamed Nasheed, but the project has run into rough weather, particularly after a change in regime in the country earlier this year. The opposition during Nasheed's government had challenged the privatisation process and threatened to re-nationalise the airport should it come to power.

An opposition party also took to court the issue of USD 25 airport development charge (ADC) to be charged by on outgoing passengers by GMR, as stipulated in the concession agreement.

The new government stepped up nationalisation rhetoric after assuming power, and asked GMR to temporarily halt the development of a new terminal at Ibrahim Nasir International Airport (INIA). The airport agreement is the largest single investment in the history of Maldives.

Responding to questions at a press conference on Friday, Waheed said that a decision on the agreement with GMR needed to be made soon and hence he was obtaining the views of all relevant stakeholders.

Speaking to reporters prior to departing to New York to participate in the United Nations (UN) General Assembly, the President said he would make the best decision on the basis of available information. "When the time is right, I won't take a single step back in making a decision over the matter. So, inshahallah, it will be done. Based on the information available, I will make the best decision for the Maldives," the President said speaking publicly for the first time after the government publicised the economic review of the GMR agreement.

When asked about his views on the question of annulling the agreement with GMR, Waheed said he had not discounted that as a possible option.