The public operator of Abu Dhabi airport has canceled a contract with a consortium that was building a 10.8 billion dirhams ($ 2.94 billion) terminal at the emirate’s main airport, told Reuters four sources familiar with the matter.
The group, which includes UAE-based Arabtec, Turkish company TAV Insaat and Athens-based Consolidated Contractors Company (CCC), won the contract in 2012 for the construction of the Midfield terminal at the international airport. from Abu Dhabi.
One of the sources said state-owned Abu Dhabi Airports canceled the contract after the group exceeded project costs.
Abu Dhabi Airports and TAV Insaat declined to comment. Arabtec, which filed for liquidation in January, and representatives of the CCC could not be reached for comment.
The terminal, which is still under construction and was once slated to open in 2017, has been plagued by years of delays. Abu Dhabi Airports reported in 2019 that construction of the new terminal was 97.6% complete.
Two sources said Trojan, headquartered in Abu Dhabi, was awarded the contract to complete construction of the terminal.
Trojan did not respond to a request for comment.
The new 700,000 square meter terminal was supposed to support the growth of Abu Dhabi’s Etihad Airways. When the project was launched, the state-owned airline was looking to build a major transit hub in the capital of the UAE, but it has restructured and reduced its ambitions since then.
The contract cancellation also comes amid a deep recession triggered by a pandemic in the travel industry that is expected to take years to recover.