Maldives Current Affairs - 2019

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No-Confidence motion against Mohamed Nazim over GMR issue

The opposition party in Maldives has reacted to the cancellation of GMR contract by invoking no-confidence motion in Parliament against Defence Minister (and acting Transport Minister) Mohamed Nazim, the front man for the ruling party in scrapping the contract. The opposition alleges that the minister has abused his authority as the Acting Transport Minister by using military influence to terminate civil contracts involving the government outside of the legal process.

However, President of Maldives Mohamed Waheed Hassan Manik continues to maintain that the GMR airport issue is purely contractual and nothing else.

Month: Categories: International


Maldives cancels GMR’s $511m airport project

  • Maldives has cancelled a USD 511 million deal with Indian firm GMR.
  • Maldives has also ordered Orders GMR to leave the country within 7 days.
  • India has warned Maldives to honor the legal contract.

Why was the cancellation of GMR project?


  • The deal b/w Maldives and GMR was inked under former president Mohamed Nasheed’s administration in 2010. This was done via a competitive bidding process conducted by the World Bank’s International Finance Corporation (IFC).
  • As per the contract, GMR had to upgrade and operate the Maldives airport and build a new terminal.
  • On February 7, 2012 Mohamed Nasheed was forced for a resignation as President in a coup d’état. Nasheed’s rival Mohammed Waheed Hassan became the president of Maldives.


  • Nasheed’s rivals filed a legal action holding the contract with GMR as invalid because the contract contains a $25 airport development charge per outgoing passenger which was not authorized by the parliament.

The cancellation of the GMR contract has raised questions over the future of foreign investment and concerns over investor protection in the Maldives.

Month: Categories: Business, Economy & Banking