GMR deducts US$ 100,000 from fees paid to Airport

GMR has deducted US$ 100,000 and paid US$ 7.79 million as concession fee to the Maldives Airports Company Limited (MACL) for the final quarter of 2011.

GMR said in a document published today that US$ 100,000 has been deducted from the concession fee due to the removal of US$ 2 per passenger as insurance surcharge, following a Civil Court order.

MACL’s financial documents show that US$ 7.79 million was paid by GMR to the government as concession fees for the final quarter of 2011. The company said that US$ 1.5 owed as fixed concession fee for this year has also been paid by GMR.

MACL also estimates the receipt of US$ 4.5 million in concession fees since GMR took over the airport in November 2010.

The issue of concession fees surfaced when the Civil Court ruled that US$ 25 imposed as ADC, as well as the figures stated as concession fees in the agreement made between the government and GMR were unlawful. This ruling was issued in December 2011.

Finance Ministry estimates a decrease in the government’s monthly income by about US$ 3 million following the government’s decision accept GMR’s suggestion to deduct the amounts (of US$ 25 as ADC and US$ 3 as insurance) from the fees it owes to the Maldivian government.

ACC is currently investigating this matter.