The Singapore High Court today stayed the Maldives government's decision to annul the $500 million contract given to India's GMR Infrastructure Ltd to develop and operate the Male airport. This means that its operations will continue, a GMR spokesperson said today.
"The Singapore High Court has passed an injunction against the Maldivian Airport Co Ltd and the government from taking any action based on the November 27 letter," the spokesperson said.
He didn't specify the period of the stay, but said that according to the contract's provisions, legal proceedings could be undertaken in either London or Singapore. Under the terms of the contract, in case of differences between the various parties to the contract, the law of either Singapore or the UK would apply.
Asked if GMR will continue to operate the airport, the company official said, "We will. The arbitration process will continue on the side."
A consortium of GMR Infrastructure and Malaysia Airports Holdings Bhd had bid $511 million in a 2010 government auction to win the contract to build and operate a new terminal at the Male airport. The contract also allowed the consortium to run the Male airport in the archipelago nation's capital for 25 years.
But a new government in the politically volatile country said last Tuesday that the contract was illegal; and ordered GMR to get its personnel out of the country within seven days.