General Industry

Abu Dhabi Cancels Airport Terminal Contract, Sources Say

By Dave Simpson
Abu Dhabi Cancels Airport Terminal Contract, Sources Say

Abu Dhabi's state-owned airport operator has cancelled a contract with a consortium that was building a 10.8 billion dirham ($2.94 billion) terminal at the emirate's main airport, four sources familiar with the matter have told Reuters.

The group, which comprises United Arab Emirates-based Arabtec, Turkey's TAV Insaat and Athens-based Consolidated Contractors Company (CCC), were awarded the contract in 2012 to build the Midfield Terminal Building at Abu Dhabi International Airport.

One of the sources said that state-owned Abu Dhabi Airports cancelled the contract after the group over ran project costs.

Declined To Comment

Abu Dhabi Airports and TAV Insaat declined to comment. Arabtec, which filed for liquidation in January, and CCC representatives could not be reached for comment.

Plagued By Years Of Delays

The terminal, which is still under construction and was once scheduled to open in 2017, has been plagued by years of delays. Abu Dhabi Airports in 2019 said that construction of the new terminal was 97.6% complete.


Possible Trojan Contract

Two sources said that Abu Dhabi-headquartered Trojan had been awarded the contract to finish the terminal's construction.

Trojan did not respond to a request for comment.

Etihad Ambitions

The new 700,000 square metre terminal was supposed to support the growth of Abu Dhabi's Etihad Airways. When the project was launched, the state-owned airline was seeking to build a major transit hub in the UAE capital, but it has restructured and scaled back its ambitions since then.

Recession In The Travel Industry

The contract cancellation also comes amid a deep COVID-19 pandemic-driven recession in the travel industry that is forecast to take years to recover.

News by Reuters, edited by Hospitality Ireland. Click subscribe to sign up for the Hospitality Ireland print edition.