Nakheel to restart six projects
Nakheel will resume work on at least six projects by early October as it settles outstanding bills with contractors.
Nakheel will resume work on at least six projects by early October as it settles outstanding bills with contractors.
The developer, which is owned by Dubai World, is restructuring US $10.5 billion (AED 38.6 billion) owed to banks, contractors and service providers. Contractors last month started to receive payments
from the developer of the Palm Islands, paving the way for resumption of stalled projects around the emirate, according to a report in The National.
“Nakheel is currently engaging contractors in the short-term projects with a view to continuation in the coming weeks,” the company told The National. “We expect that all short-term projects will be fully mobilised by early October 2010.”
In late June, Nakheel said it had reached an agreement with 75% of its trade creditors and pledged to settle AED 4 bilion of claims by the middle of last month.
Nakheel chairman Ali Rashid Ahmed Lootah said the company was dealing with 1000 trade creditors. Companies including Arabtec Construction and Halcrow, a UK engineering firm involved in the Palm Jumeirah, have confirmed they received initial payments from Nakheel.
Among the first projects likely to resume are Jumeirah Park, Al Furjan, Jumeirah Village, Jumeirah Islands Mansions, Jumeirah Heights Clusters and Al Badrah, according to the article. Ziad Makhzoumi, the chief financial officer of Arabtec, which stopped work on Al Furjan in January, said recently that
the project would restart soon.
