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Maldives cancels biggest foreign investment project with India

Published on Nov 28, 2012 6:59 PM
 
In this file photo taken on Oct 18, 2003, An aeroplane lands at Male International Airport while a sail boat makes its way through a blue lagoon. Maldives has cancelled its biggest foreign investment project, a US$511-million (S$627 million) deal with Indian firm GMR Group to develop its international airport. -- PHOTO: AFP

MALE (REUTERS) - Maldives has cancelled its biggest foreign investment project, a US$511-million (S$627 million) deal with Indian firm GMR Group to develop its international airport, raising questions over the future of foreign investment in the islands renowned for luxury resorts.

The cancellation of the deal signed in 2010 follows President Mohamed Waheed's failure to renegotiate terms, sources close to the president's office said.

GMR, a subsidiary of Bangalore-based GMR Infrastructure, has been given seven days to leave the Indian Ocean island chain.

"It is cancelled by the cabinet on the instructions of the president. It was not a valid agreement," Mr Imad Masood, the president's spokesman said on Tuesday.

 
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