Maldives Offers Male international airport project to Chinese company

NEW DELHI: In what may be viewed as a setback to India’s strategic clout in its neighbourhood, Maldives has offered the project to upgrade Male international airport to a Chinese firm during President Xi Jinping’s visit, earlier contracted to Indian firm GMR but unilaterally terminated in 2012.

The contract to expand Male airport has been given to Beijing Urban Construction Group Company Limited, notwithstanding the fact that Maldives is yet to pay the GMR group damages after the international arbitration tribunal in Singapore ruled in favour of the GMR last June.

Sources in the GMR expressed surprise at the move by the Maldives government as it has entered in a new contract for construction work at airport without paying damages as suggested by the tribunal.

Official sources in Delhi told ET that the new contract with Beijing is for upgrading the airport and not for running it. Interestingly during Abdullah Yameen’s maiden visit to India as Maldives President this January after winning election he had assured amicable solution to the GMR case and allayed fears of Indian investors.