After Chinese President Xi Jinping visit to Male, the capital of Maldives on 15th September 2014, Chinese firm has bagged a deal for upgrading the international airport in Male.
The Maldives government had earlier given the $511 million contract to an Indian company, GMR Infrastructure, and cancelled it two years ago over user charges.
The deal has now gone to Beijing Urban Construction Group Company Ltd.
This move of China has strategic significance in the Indian Ocean area, particularly in light of Chinese contractors building sea ports in Sri Lanka.
Significantly, the Maldives also accepted President Xi's request to join the Chinese Maritime Silk Road programme, aimed at linking China to Europe through the seas of South Asia.
Sri Lanka and Singapore have earlier expressed their desire to join the programme, which will connect China with the Indian Ocean
Maldives has even offered China a significant offer to help China play a bigger role in the South Asian Association for Regional Cooperation (SAARC).
Maldives has expressed its interest in the Shanghai Cooperation Organization.
GMR vs Maldives issue on Male International Airport Ltd (GMIAL)
In 2012, GMR and its subsidiary GMR Male International Airport Ltd (GMIAL) had bagged the $500 million project and 25-year contract to modernise and operate the Male International Airport.
The project was given to GMR by Mohamed Nasheed government on public-private partnership. It was one of the single largest foreign investments in Maldives.
But after the change of the Mohamed Nasheed government in 2012, the new government of Maldives declared that the concession agreement was “void ab initio” and noted that after the termination of contract with GMR.
New Maldives government mentioned that Male international airport is owned by Maldives Airports Company Limited (MACL) and they would run the airport. On 7th December 2012, GMR handed the airport to the government of the Maldives and now it's being run by MACL.
GMR had taken this issue in Singapore based arbitration Rt Hon Hoffman’s Tribunal.
No comments:
Post a Comment