View
715
Download
0
Category
Preview:
Citation preview
K
h a r
g
h a r
SMBA
30-B
Group
-1-
… The Air Controversy GMR & Maldives -case study
analysis…Presentation By:Sanjay Kumbhar (Roll No 107)Athira Nair (Roll No 79)Pradip Nevarekar (Roll No 108) Rachita Jain (Roll No 67)Namita Shinde (Roll No 72)Madhu Jaiswal (Roll No 80)J.Ranjam (Roll No 120)
K
h a r
g
h a r
SMBA
30-B
Group
-1-
… The Air Controversy GMR & Maldives -case study
analysis…*** Flow of Presentation ***
Introduction - Rachita
Bidding Process -Pradip
Award of Contract -Namita
What Went Wrong? – Athira
Perception from Maldive Govt.- Ranjan
Perception from Indian Govt.– Madhubala
Arbitration claim- Sanjay
Conclusion
K
h a r
g
h a r
SMBA
30-B
Group
-1-
… The Air Controversy GMR & Maldives -case study
analysis…*** Introduction ***
• Introduction
• Reason
• Purpose
• FAA with IFC & World Bank
• Contents of FAA
K
h a r
g
h a r
SMBA
30-B
Group
-1-
… The Air Controversy GMR & Maldives -case study
analysis…*** Bidding Process ***
competitive bidding process.
1- IFC agreement 28/7/09
2- Transaction Structure Report
3- Announcement 6/10/09
4- EOI acceptance
5- Sending RFQ 23/12/09
6- Pre-qualification Application acceptance 17/1/10
7- Pre-qualification evaluation 20/1/10
8- Sending of RFP/IM 18/3/10
9- Bid opening 20/6/10
10- Bid Evaluation 24/6/10
11- Signing the agreement 28/6/10
K
h a r
g
h a r
SMBA
30-B
Group
-1-
… The Air Controversy GMR & Maldives -case study
analysis…*** Award of Contract ***
Introduction- GMR & MAHB.
Contract Duration- 25 years
Contract Value- $511 million
Terms & Conditions- ADC
K
h a r
g
h a r
SMBA
30-B
Group
-1-
… The Air Controversy GMR & Maldives -case study
analysis…*** What Went Wrong in Male ? ***
Socio- Politico-Economic-Dynamics
New Delhi’s Blunder
GMR
Arrogance
K
h a r
g
h a r
SMBA
30-B
Group
-1-
… The Air Controversy GMR & Maldives -case study
analysis…*** Perception of Maldive Govt. ***
Failure to renegotiate terms
Not a valid agreement,“
ADC not authorised by the parliament.
Non-reversible & Non-negotiable decision
Deter potential investors - down a path to economic ruin.
GMR’s due diligence
Fooled and cheated.
Illegal
K
h a r
g
h a r
SMBA
30-B
Group
-1-
… The Air Controversy GMR & Maldives -case study
analysis…*** Perception of Indian Govt. ***
Very negative signal to foreign investors & international
community
Freeze $25-million annual aid to the country
We are not happy
Impact on our bilateral ties
Maldivian foreign minister Abdul Samad Abdullah, Salman
Khurshid & Prime Minister Manmohan Singh
K
h a r
g
h a r
SMBA
30-B
Group
-1-
… The Air Controversy GMR & Maldives -case study
analysis…*** Legality & Arbitration ***
Maldives terminates GMR's airport contract (27th Nov’12)
The airport was taken over by the Maldives Airports
Company Limited after a high-voltage legal tussle in which
GMR had initially got a stay order on the termination from
the Singapore High Court.
GMR approach Singapore court against Maldives Govt ,
claims $800 Million
Feels Cheated -contract cancelled over an illegal component
–ADC
Agreement had stated that GMR should be given a 30-day
notice of termination, the government believed that it need
not be followed since the contract was void.
The government has given a seven day notice to GMR to
leave the airport,“.
K
h a r
g
h a r
SMBA
30-B
Group
-1-
… The Air Controversy GMR & Maldives -case study
analysis…*** Conclusion ***
June 17, 2013- GMR gets clean chit from Maldives probe agency in Male airport case because i) Concrete record on the concession agreement.& ii) No corruption was found in the bid evaluation ph
June 21, 2013- GMR sue has sought a compensation of $1.4 billion for the “wrongful termination” of its 25-year contract to develop and operate the Male International Airport. The figure of $1.4 billion was reached after taking into account loss of profit, payments made to sub-contractors besides others.
Sept 21, 2013 MALE (MALDIVES)- Maldives Govt welcomes & encourages FDI- Foreign Direct Investment, but differed on the issue of the ousted Male airport operator GMR.
Wrong Signal, Image Damage, Power to economy- Tourism, the country is desperately trying to attract FDI for building its infrastructure. It can hardly be disputed that treating the largest FDI investor in such a manner is likely to send all the wrong signals about the investment environment in the country.
K
h a r
g
h a r
SMBA
30-B
Group
-1-
… The Air Controversy GMR & Maldives -case study
analysis…
Recommended