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

[Abingdonboy]

SINGAPORE/MALE/NEW DELHI: In a move to put pressure on Male, India has frozen aid to Maldives as its 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.

"High court of Singapore today (Monday) granted injunctive relief (stayed) against the applicability and operations of (contract termination) letter issued by the ministry of finance and treasury (MoFT), government of Maldives," GMR said in a statement.

"The high court upon hearing both the parties was pleased to grant this stay in favour of GMIAL (consortium of GMR-MAHB)."

However, the arbitration process will continue on the sidelines, said a company official.

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.

Upset at the Maldives government's attitude, India has put on hold $25-million budgetary commitment to Male, said reliable sources on Monday.

Bilateral ties will be affected, said the sources.

The Indian government is also studying the court order and its implications, said the sources.

The Maldives government Wednesday had defended its decision to terminate the GMR contract, saying the deal was dogged by "legal, technical and economic issues". However, in the wake of reaction by the Maldives government Monday, it seems legal issues were only the fig leaf behind which President Mohamed Waheed was hiding, the sources said.

In New Delhi's assessment, there are many vested interests at work, a veiled allusion to the increasing clout of a pro-China clique that is said to be close to the powers-that-be in Male and has influenced the decision to scrap the GMR contract.

What is more distressing to India, the sources added, is the way a commercial dispute has been used by some fringe elements and political parties in the Maldives to whip up anti-India sentiments.

"It has become an election issue and it has ceased to be a purely commercial matter," said the sources.

Elections are scheduled to be held in the Maldives late next year, but there are indications that they could be held as early as next year. GMIAL, which is a consortium of GMR and Malaysian airports operator MAHB, had won the right to operate and modernise Ibrahim Nasir International Airport in a bidding conducted by IFC, an arm of the World Bank.

The Maldivian cabinet had directed GMIAL to hand over the airport within seven days to MACL. It had also asked GMR to vacate and remove all property from the airport within 30 days.

According to GMR, both MACL and the MoFT, under the concession agreement, "are not allowed to interfere with the rights of the Investor (GMR-MAHB consortium)".

"With this (judgment), GMIAL shall continue to operate the Ibrahim Nasir International Airport as usual as per the provisions of the concession agreement," GMR said.

GMR row: India freezes aid to Maldives, ties under stress - The Times of India on Mobile


These people are acting like idiots. India should send a few IN ships over just to show them who's boss. India tries to hard to play the "nice guy" in the region with these smaller nation but all too often these nations see this as a weakness and walk all over India. Maybe a show of strength is all that is needed to get these fools to see who is the boss.

 

[Abingdonboy]

NEW DELHIi //India warned its neighbour the Maldives yesterday that it might freeze annual aid worth US$25 million (Dh91m) amid anger over an attempt to kick out the Indian firm managing the main airport in the country.
Related

Last week, the new Maldives government gave five days to Indian infrastructure company GMR to leave after prematurely ending a 25-year management lease signed for the archipelago's international airport in the capital Male.
In a further blow, the Maldives government the lost a case in the Singapore high court yesterday where GMR won an injunction that stays the cancellation of the contract, the company said.
The move over the airport angered New Delhi and raised concerns about the investor climate at a time when the Maldives is seeking foreign financing for tourism projects after a year of political turmoil. "We are not happy with the way Maldives cancelled the GMR airport deal. This has surely left an impact on our bilateral ties," said an Indian foreign ministry official.
A second official in the ministry said next year's financial aid of $25 million would be provided only "after every aspect of the airline deal is reviewed".
"A decision whether the money should be given or not will be taken soon," he said.
Bangalore-based GMR Infrastructure had signed the deal to manage the airport in 2010 under former president Mohamed Nasheed, the country's first democratically elected leader who was ousted after violent protests in February this year.
Mr Nasheed's deputy, Mohamed Waheed, assumed the presidency in what the former government initially described as a "coup" but which has since been judged a legal transfer of power.
Mr Waheed's government, which has aligned more closely with a hardline Islamist party, objected to the privatisation of the airport carried out by Nasheed and said the deal was corrupt.

http://www.thenational.ae/news/worl...s-to-freeze-dh91m-in-aid-over-airport-dispute

 

[rubyjackass]

GMR row: India freezes aid to Maldives, ties under stress - The Times of India on Mobile


These people are acting like idiots. India should send a few IN ships over just to show them who's boss. India tries to hard to play the "nice guy" in the region with these smaller nation but all too often these nations see this as a weakness and walk all over India. Maybe a show of strength is all that is needed to get these fools to see who is the boss.

That will just screw up things more. As of now, the public does not seem to have turned anti-India. Let them be so. Maldives is punishing itself by scaring off all the western investment.

 

[Sashan]

As GMR deadline nears, Waheed regime on the back-foot



Nasheed’s party successfully gets amendments to Parliamentary rules cleared to impeach the President

As the December 7 deadline that the Maldivian government set for throwing out the Male airport operator, the India-based multinational GMR, nears, two developments have forced the government on the back-foot : One, a piece of legislation that has been passed in the Majlis (Parliament), and two, the main opposition party, the Maldivian Democratic Party’s reformed ways.

Parliament on December 3 voted 41-34 to approve amendments to parliamentary rules to conduct no-confidence votes to impeach President and members of his Cabinet by a secret ballot. The success of the vote was the first MDP victory in several months. It was an MDP initiative, and this time, it had the support of two parties that had earlier thrown its lot with the government. Former President Mohamed Nasheed’s party, the MDP, finding allies is the second development.

“We have submitted a petition to move a no-confidence motion to remove the Defence Minister [Mohamed Nazim] and the Home Minister [Mohamed Jameel] just a short while ago,” MDP’s International spokesperson Hamid Abdul Gafoor told The Hindu over phone from Male on Tuesday evening. “With the JP and DRP supporting us in the vote [on December 3], we are sure we will have the numbers when the motion is taken up for voting,” he added.

Street protests

Not satisfied with the parliamentary attack on the government, the MDP also organised street protests on Tuesday to “protest the manner in which the government was treating foreign investments.”

At the heart of the tussle is the modernisation of the Ibrahim Nasir International Airport, which was handed over to GMR after a process of competitive international bidding overseen by a World Bank body. Last year, GMR decided to levy a user development free of $25, which led to widespread protests. Later, a court order stayed the charge.

After Mr. Nasheed resigned as President on February 7, 2012, the new government, led by Dr. Mohamed Waheed wanted to review the terms of agreement granted to GMR. A few members of the Waheed government were openly against the airport operator and had been demanding that GMR leave the country. The GMR investment is the largest FDI in Maldives.

Status quo

Status quo was ordered on Monday, on a Singapore-based arbitration. The news delighted the MDP, and made some elements of the Waheed government defiant. “I am delighted to hear that the Singapore courts have intervened in this dispute and upheld the rule of law. I look forward to GMR continuing its operations and completing the construction of a new, world-class airport terminal,” Mr. Nasheed said after the verdict.

Ministers Mr. Nazim and Mr. Jameel refused to back off and GMR was given seven days to clear out. As a first step to hindering operations, Maldives Immigration refused to renew the work visas of the foreign staffers whose visa was due for renewal.

Double-speak

Dr. Waheed has employed a double-speak that is central to the problems that India, and Indian firms have faced in Maldives since the transition since February this year. For instance, speaking at a function to mark the 47th anniversary of establishment of diplomatic relations between Male and New Delhi, Dr. Waheed said that Maldives would always welcome Indian investments. “International businesses that have done well are those that are built on mutual trust and respect… small countries are very conscious of their national pride and sovereignty… It is not a secret that we are currently facing some difficulty with some Indian companies, we must overcome these difficulties and adamantly resist such difficulties from affecting our very close and brotherly relationship.”

Dr. Waheed has repeatedly made such commitments, and said that he believed in solving issues through negotiations. Despite the assurances, Maldives is now forcing India’s hand on the GMR issue.

 

[isro2222]

Maldives important for peace in asia.... As u know china wants to be in maldive and even requested maldive goverment for military base.... India can do alot of things.... but i dont recommend any mischief like sending our navy and IAF.... To maintain peace india should join hand with japan.... Trust me that its the best option to maintain peace in Asia.... India japan friendship will be the most strongest one as both power in asia along with china.... Peace is must.... For peace few moves has to be played. Btw what happened in maldives were expected. Same thing happened in nepal and bangladesh but wasnt successful and we all know who tried to do it.... Few moves by india will ensure peace in asia.... Forget maldives.... Shake hand with Japan.... Sign the treaty of war in which both countries will help each other in case of war.... It will solve every problem.... And would make other countries think over and over again before doing any mischief....

 

[hussain0216]

India is a threat to the muslims of the maldives

modi who orchastrated the gujraat massacre will soon be in charge and the maldives should reject india first

 

[dollarman]

That will just screw up things more. As of now, the public does not seem to have turned anti-India. Let them be so. Maldives is punishing itself by scaring off all the western investment.

Thast true, general population of Maldives is not anti-India (yet). But the Govt of Maldives needs a kick in the backside to sort out its priorities and India is giving it here.

 

[hussain0216]

The maldives are a free and independent nation

if they dont like you and dont want to work with you then why dont indians **** off

its not like anyone else in south asia likes india

 

[dollarman]

The maldives are a free and independent nation

if they dont like you and dont want to work with you then why dont indians **** off

its not like anyone else in south asia likes india

You kidding me bro, its part of our Akhand Hindu Bharat philisophy. We aint going nowhere

 

[my2cents]

The maldives are a free and independent nation

if they dont like you and dont want to work with you then why dont indians **** off

its not like anyone else in south asia likes india

Have you even read the article or just spewing your hate. Not everyone looks at a country in black or white. Neither should you. They may not like this business deal, but you don't go about punishing the business to vacate in 7 days. Mind you this is $500 million deal won by GMR and they have invested considerable amount of their own money in the project. All India is trying to do is let them know that we are not happy and we will stand by our companies and our business interests.

 

[kawaraj]

Anyone from Maldives if he goes through this thread will just go Anti-India.

Save your chauvinism and let Maldives decide what they will do. It will be idiotic to be angry and shout at this little nation. They will turn against you.

 

[ajtr]

Welcome to PRC...................

 

[Capt.Popeye]

These people are acting like idiots. India should send a few IN ships over just to show them who's boss. India tries to hard to play the "nice guy" in the region with these smaller nation but all too often these nations see this as a weakness and walk all over India. Maybe a show of strength is all that is needed to get these fools to see who is the boss.

No need to do any of that.
Things in the Maldives are extremely unstable as it is. Soon enough there will be another eruption between the Maldivians (it keeps happening frequently there). Then the Maldivian Govt. will again send a SOS to GoI to mount another "Operation Cactus" to bail them out, or else they will just end up pushing each other into the sea. And they are too far to be able to swim anywhere by themselves.

The GoI needs to do nothing overt at all. Suspend aid, let the turmoil increase; then the unrest will increase, tourism (their Economy's life-blood) will dwindle. Then they will start to think afresh. Any uncontrolled turmoil in their country will be extremely damaging, even suicidal.

 

[kawaraj]

No need to do any of that.

The GoI needs to do nothing overt at all. Suspend aid, let the turmoil increase; then the unrest will increase, tourism (their Economy's life-blood) will dwindle. Then they will start to think afresh. Any uncontrolled turmoil in their country will be extremely damaging, even suicidal.

so what you suggest implicitly is India will just covertly stir up turmoil in the country. How evel is that?

You aren't familar with those tragic history of Sri Lanka? You are worse than trolls if you mean so.

 

[Imran Khan]

GMR row: India freezes aid to Maldives, ties under stress - The Times of India on Mobile


These people are acting like idiots. India should send a few IN ships over just to show them who's boss. India tries to hard to play the "nice guy" in the region with these smaller nation but all too often these nations see this as a weakness and walk all over India. Maybe a show of strength is all that is needed to get these fools to see who is the boss.

so you think they should be indian slaves ? and a sovereign country has no right to sign or cancel a deal with India ? that's why all of your neighbors hate you .you are not boss you are equal to them as a sovereign nation . deal cancel send in ships huh