GMR pays US$78 million upfront

GMR pays US$78 million upfront

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| DATE: 2010-11-01

MALE, November 1 (HNS) – India’s GMR Infrastructure had paid the US$78 million (about Rf1 billion) upfront to the government, Finance Ministry announced Monday.

State Minister for Finance Ahmed Aslam said the ministry received the bank deposit document on Sunday – the deadline for the payment.

The government earlier said the consortium formed between GMR and Malaysia Airports Holdings Berhad (MAHB) should settle the payment prior to the scheduled takeover of operations in November.

“The document was sent yesterday and the money would be received within 72 hours maximum. We are expecting to get the sum today, as yesterday was a public holiday [for other countries],” Aslam said.

The government leased the airport to GMR for 25 years on June 29. The Indian company formed a joint venture with Malaysia Airports Holdings and registered GMR Male International Airport Private Limited at Trade Ministry.

The GMR-MAHB consortium 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. It 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 revealed that GMR-MAHB would invest US$400 million for building, modernising, and expanding the airport.