GMR bans Male airport contract

HYDERABAD: GMR Infrastructure today won the expansion and management contract from the Male international airport, the Maldives.

According to news reports from the Maldives, the company offered almost 1 billion rufiyaa (USD 78 million) upfront to win the contract. According to sources in the company, the Maldivian government will award the contract tonight.

The report stated the GMR proposed to pay USS 78 million upfront, 1 percent of the total profit in the first year (until 2014) and 10 per cent of the profit from 2015 to 2035.

The company also agreed to pay 15 per cent of fuel trade revenues in the first four years and 27 per cent from 2015 to 2035.

Another Indian bidder GVK Airport Developers reportedly offered USD 27 million as upfront payment, 27 per cent of the total profit in the first four years and 9 per cent of the profit from 2015 to 2035. The consortium agreed to pay 9 per cent of fuel revenues.

Another bidder, Turkey's TAV Airports Holdings Company and French Airports De Paris Management offered USD 7 million upfront payment, 31 per cent of profit until 2014 and 29.5 per cent of profit for the remaining years. The companies offered 16.5 per cent of profits from fuel trade.