Abu Dhabi cancels $3 bln airport terminal contract

Abu Dhabi’s state-owned airport operator has cancelled a contract with a consortium which was constructing a ten.8 billion dirham ($2.94 billion) terminal on the emirate’s essential airport, 4 sources acquainted with the matter advised Reuters. ($1 = 3.6726 UAE dirham)

The group, which contains United Arab Emirates-based Arabtec, Turkey’s TAV Insaat and Athens-based Consolidated Contractors Firm (CCC), have been awarded the contract in 2012 to construct the Midfield Terminal Constructing at Abu Dhabi Worldwide Airport.

One of many sources mentioned state-owned Abu Dhabi Airports cancelled the contract after the group over ran challenge prices.

Abu Dhabi Airports and TAV Insaat declined remark. Arabtec, which filed for liquidation in January, and CCC representatives couldn’t be reached for remark.

The terminal, which remains to be underneath development and was as soon as scheduled to open in 2017, has been suffering from years of delays. Abu Dhabi Airports in 2019 mentioned that development of the brand new terminal was 97.6% full.

Two sources mentioned Abu Dhabi-headquartered Trojan had been awarded the contract to complete the terminal’s development.

Trojan didn’t reply to a request for remark.

The brand new 700,000 sq. metre terminal was alleged to assist the expansion of Abu Dhabi’s Etihad Airways. When the challenge was launched, the state-owned airline was looking for to construct a serious transit hub within the UAE capital, however it has restructured and scaled again its ambitions since then.

The contract cancellation additionally comes amid a deep pandemic-driven recession within the journey business that’s forecast to take years to get well.

By Alexander Cornwell, Davide Barbuscia, Hadeel Al Sayegh www.reuters.com