GMR row: India freezes aid to Maldives, ties under stress

[Sashan]

By hook or crook- aint it -

Thats true - Land of Chanakya - what do you think?

 

[Spring Onion]

I just did not want to derail the thread... but was pointing to your country for similar example. In your case it worked out because you guys started cooperating with US for want of aid money. Maldives may do the same for all we know. How are they going to compensate to the tune of $700 million to GMR??? They do not have enough money to pay their employees. If they are thinking of not compensating then it is outright bullying in my opinion. Now, one of their minister is saying that they had to cancel the contract for their own party survival.

If you were the judge in this case how would you rule???

Termination crucial to our survival: Maldivian Minister



The move by the Maldives to terminate GMR Infrastructure’s 25-year contract to own and operate the Male International Airport is a “totally economic decision” that is crucial to its survival, according to Ahmed Adeeb Abdul Gafoor, Minister of Tourism, Arts and Culture of the Maldives.

In a telephone interview to The Hindu from Male, Mr. Gafoor said: “The terms of the contract are not positive. We believe that this airport is a strategic asset for the government, and we cannot accept a situation where we have to pay someone to run it.”

Holding that there was no concession agreement in the world with a $25 Airport Development Charge, he said tourism was growing and the government would have to pay GMR for every extra tourist arriving in Male. “This year, we have paid them $7 million and with tourist arrivals growing, next year we may have to pay them $8 million. This is not sustainable.”
A million tourists visited the Maldives this year, and Mr. Gafoor expects the number to go up to five million in the 25 years that the GMR concession will run.

Explaining the context of the termination, he said privatisation of the only international airport in the country ought to have been done with Parliament’s approval instead of being an executive decision. The airport had to be accessible and cheap for airlines as it was critical for tourism, the mainstay of the island nation’s economy.


Referring to the contract as “lopsided,” Mr. Gafoor said it gave revenues only to the investor (GMR) and not to the government. “This deal is similar to the Delhi airport contract with GMR, but the government there got a better deal with a 45 per cent share of the revenues. We get only 1 per cent here.”

Mr. Gafoor stressed repeatedly at different points during the conversation that the decision had nothing to do with India politically.


“We have no issue with India, which is our closest friend. This is a company-to-company (Maldives Airport Company-GMR) issue and [it] will be resolved. India is our big brother, and I’m sure will understand.”
He sought to underline the fact that the Maldives had no problem with GMR but only with the process followed for the contract. “We are not hostile to GMR and have no issue with the company,” he said. The “real culprit of the deal is the previous government.”
Redemption of bonds


Asked whether his government was prepared to compensate GMR for the termination, he said it should be decided in court. “If GMR can prove its investments and it is validated by an independent party, we will bear it,” he said, pointing out that only on Monday did his government redeem $50 million of its bonds held by State Bank of India.

“The bonds fell due, and we asked for a roll-over but the Indian government said it was not possible and we redeemed them.” The Maldives government appears determined to regain control over the airport when the deadline ends on December 7.

Asked what its options were if GMR dug its heels in, Mr. Gafoor said: “We’ve requested them and we believe there will be a smooth transition. They are a professional company, and I believe they will respect us.” What if GMR offers a compromise, agreeing to renegotiate the contract on terms more favourable to the Maldives?
“Time has gone beyond that. Even our President had asked them several times in the last few months for a discount on fuel prices, but they did not agree.”

Asked whether this meant he was ruling out a compromise, the Minister retorted with a categorical “Yes, this is best resolved through arbitration.”
The Hindu : News / National : Termination crucial to our survival: Maldivian Minister

 

[Sashan]

Explaining the context of the termination, he said privatisation of the only international airport in the country ought to have been done with Parliament’s approval instead of being an executive decision. The airport had to be accessible and cheap for airlines as it was critical for tourism, the mainstay of the island nation’s economy.

That is some BS - GMR has already clarified that they will not charge airport fees for the Maldivian passengers. As for charging the tourists and other passengers, it is normal everywhere across the world in many airports for that kind of fees to be paid. So nothing new to affect the tourism.

 

[Spring Onion]

That is some BS - GMR has already clarified that they will not charge airport fees for the Maldivian passengers. As for charging the tourists and other passengers, it is normal everywhere across the world in many airports for that kind of fees to be paid. So nothing new to affect the tourism.

Under Maldives it might be cheaper.

anyway you tended to ignore his solid reasons.

I see Maldives is acting in right direction for its own iterests and it is its right.

 

[IND151]

Hope this issue gets solved soon

 

[Sashan]

Under Maldives it might be cheaper.

anyway you tended to ignore his solid reasons.

I see Maldives is acting in right direction for its own iterests and it is its right.

I did not - Anyway apart from the technicality of executive decision vs parliament ratification(which they can do even now if they want) - the tenders were done under watchful eyes of Worldbank and apart from that, there is no corruption of foulplay. It is a fair game. So what solid reasons these people have? None - that is the reason World bank has thrown its weight behind GMR and Singapore court has stayed the taking over by the Maldives government.

 

[my2cents]

That is some BS - GMR has already clarified that they will not charge airport fees for the Maldivian passengers. As for charging the tourists and other passengers, it is normal everywhere across the world in many airports for that kind of fees to be paid. So nothing new to affect the tourism.

Singapore charges about $20 as airport transit fee and they have 40 million travelers.

 

[IND151]

I know legal side.

What the Ignorant Indians dont know that their bullying mentality is what is wrong here



Yes its your choice BUT to use it as a pressure tool in a matter which you Indians claim has a legal implication, is indeed a BLACKMAIL





and here comes the banya factor. come on either its goodwill or its NOT at all when you DEMAND facilities in return for so-called aid/goodwill

We are not bullying Maldives

Kindly read OP

Maldive's government on Monday decided to take control of the international airport despite a Singapore court staying the suspension of the contract given to India's GMR-led consortium.

The high court of Singapore suspended the Maldives government's decision last week to terminate the $500 million contract, the single largest Indian FDI in the Maldives, awarded to the consortium for developing the Ibrahim Nasir International Airport at Male.

The Singapore high court is acting as an arbitrator in the issue between the GMR-backed consortium GMIAL and the Maldives government. Under the contract, the law of either Singapore or Britain would apply in case of differences between parties.

The Maldives government, however, chose to defy the order. "We will continue the airport takeover and Inshallah next Saturday onwards MACL (state-controlled Maldives Airport Company Ltd) will be running the airport," Defence minister and acting transport minister Mohamed Nazim told reporters in Male on Monday.

Source: http://www.defence.pk/forums/world-...maldives-ties-under-stress.html#ixzz2EAKNTxI6

 

[Sashan]

Singapore charges about $20 as airport transit fee and they have 40 million travelers.

Bro - I travel outside and I am always conscious that some airports accept only cash these airport fees - So I always see to that I have some cash in dollars on me while leaving the airport(as after few days, I start spending money in local currency after I run out of dollars)

So in short, these fees are nothing new.

 

[Spring Onion]

We are not bullying Maldives

Kindly read OP


Source: http://www.defence.pk/forums/world-...maldives-ties-under-stress.html#ixzz2EAKNTxI6

Using pressure tactics for a legal issue is NOT bullying? that too when Indians claim and believe they have more weightage in this issue?

why you needed such a bullying in the first place

 

[IND151]

Using pressure tactics for a legal issue is NOT bullying? that too when Indians claim and believe they have more weightage in this issue?

why you needed such a bullying in the first place

We are just trying to solve this issue

Decision of Maldive's govt. threatens our investment, so its natural that GOI is looking to sort out this issue

 

[Spring Onion]

We are just trying to solve this issue

Decision of Maldive's govt. threatens our investment, so its natural that GOI is looking to sort out this issue

Maldives is implying the same reason and strategy but the behaviour of Indian members suggesting sending Indian ships to Maldives teaching it a lesson and Indian tactics show that you have a big dent "Big brother" image. am i wrong?

 

[PoKeMon]

We still have some room to claim that most of the outsiders who ruled over you were from our faith so we dont get offensive atleast.


on the other hand you were kneeled down by these outsiders.

as far US-Pak relations, ahh nevermind your example is out of the context.

No, they were not from your faith but out of fear and weakness you joins there faith. Converts.

 

[PoKeMon]

Maldives is implying the same reason and strategy but the behaviour of Indian members suggesting sending Indian ships to Maldives teaching it a lesson and Indian tactics show that you have a big dent "Big brother" image. am i wrong?

Yes you are wrong as usual.

maldivians are acting like dictats. When high court pf singapore has stayed their decision why they are not following legal system??

And sending ships and all is OP's personal opinion and not Indian stand.

Maldivians, by rejecting court orders, are acting against indian interests and hence we have all authority and moral right to suspend their aid.

 

[dollarman]

Using pressure tactics for a legal issue is NOT bullying? that too when Indians claim and believe they have more weightage in this issue?

why you needed such a bullying in the first place

A neutral Singaporean court has already ruled that what they are doing is illegal, but their Govt still insists on going ahead with scrapping investments by force. They are in the wrong here, and we will use whatever tactics we please to safeguard our investments and make sure they honour the contract they signed.