Abu Dhabi Airports moves to pull MTB contractors' bonds over project delay
ABU DHABI, March 18, 2021
Abu Dhabi Airports Company has moved to cash bonds provided by the contractors consortium - comprising Turkey’s TAV, Lebanon-based Consolidated Contractors Company (CCC) and the local Arabtec Construction - working on the Midfield Terminal Building project coming up at Abu Dhabi International airport, reported Reuters.
These bonds totalling about AED3 billion ($817 million) and were to guarantee the performance of the main contractor, stated the report citing sources close to the project.
The consortium was awarded the AED10.55 billion ($2.85 billion) contract to build the Midfield terminal building way back in 2012. Since then, work has been delayed and costs have spiralled, the report said.
Although no official comment has been made on the cost overruns, it is widely expected to cost about AED20 billion ($5.4 billion) to finish. According to sources close to the project, the work is 98 per cent complete, it added.
