GMR offers Rf1 billion for Male airport
| DATE: 2010-06-24 | PRINT |



MALE, June 24, 2010 (HNS) – India’s GMR Infrastructure has offered almost Rf1 billion upfront to expand and manage Male International Airport.

On Thursday Finance Minister Ali Hashim opened bids from three international parties.

GMR proposed to pay US$78 million (almost Rf1 billion) upfront, one percent of the total profit in the first year (until 2014) and 10 percent of the profit from 2015 to 2035. The company also agreed to pay 15 percent of fuel trade revenues in the first four years and 27 percent from 2015 to 2035.

The government earlier announced the 25-year contract would go to the highest bidder. The signing ceremony is set for June 30, with the privatisation taking effect from March 2010.

Swiss company Unique (Flughafen Zurich AG) and India’s GVK Airport Developers Limited offered US$27 million (Rf346.95 million) as upfront payment, 27 percent of the total profit in the first four years and nine percent of the profit from 2015 to 2035. The consortium agreed to pay nine percent of fuel revenues.

The proposal submitted by Turkey’s TAV Airports Holdings Company and French Airports De Paris Management allocated US$7 million (RF89.95 million) for upfront payment, 31 percent of the total profit until 2014 and 29.5 percent of the total profit for the remaining years. The companies offered 16.5 percent of profits from fuel trade.

Minister Hashim opened the proposals in front of the bidders, International Finance Corporation (IFC) and journalists in a function attended by senior officials of Maldives Airports Company Limited (MACL) and other businesses.

Before the announcements, a Finance Ministry official said all three parties passed the technical evaluation. The ministry, however, did not disclose the marking criteria or any other details.

Officials of GMR who attended the function called their seniors and celebrated. The company has already won the bid, one of them told Haveeru.

“Considering the offers, we will get the highest marks. We will make the payments and take over the operations of the airport in March,” he said.

The official revealed that a company formed and registered in Maldives would manage the airport.

The government earlier announced that the successful bidder would invest some US$350 million (RF4.5 billion) for expansion, but the GMR spokesperson said but no specific amount has been allocated. MACL received over Rf250 million as profits last year.

Meanwhile, the opposition People’s Alliance (PA) submitted a resolution to the parliament to stop the privatisation, which is being carried out on IFC consultation.
James Edward ( Male' )
2010-06-25 10:31:50
this is really a good job.. =]
Ahamma Beyya ( Hulhule )
2010-06-25 10:31:14
USD 78 million is the profit amount this airport can easily make in 03yrs. So how can this be justified. What is the guarantee GMR would invest that USD 350 million for airport develkopment. What is the guarantee they would not hike the rates for airport users. What is the exit clause if they don't comply? Why cant we increase the rates , get bank loans and expand and develop this ourselves. Pointless talking as this government is adamant and cannot be convinced for anything other than their beliefs. Its unfortunate that we trusted these bunch of headless chickens who are not aware where they heading.