Abu Dhabi cancels deal with TAV-led consortium for $3bn MTB project
Trojan reportedly awarded contract to complete terminal project, which is 98% completed
Abu Dhabi’s state-owned airport operator has cancelled a contract with a consortium led by Turkey’s TAV Insaat, with the UAE-based Arabtec, and the Greece-headquartered Consolidated Contractors Company (CCC) as its members, for the Midfield Terminal Building (MTB) at the Abu Dhabi International Airport.
Citing senior sources, a Reuters report said that the deal for the $2.94 billion terminal building was scrapped after the group over-ran project costs. It added that Abu Dhabi Airports and TAV Insaat declined to comment, while Arabtec and CCC representatives could not be reached for comment.
Arabtec filed for liquidation in January.
The consortium was awarded the $2.85 billion contract to build the Midfield Terminal Building in 2012, but work has been delayed and costs have continued to spiral, it added. While no official comment has been made about these cost overruns, the project is expected to cost around $5.4 billion to finish.
Sources close to the project state that the work is 98% completed.
In March 2021, Abu Dhabi Airports moved to cash bonds provided by the contractors consortium, totalling approximately $817 million, which were to guarantee the performance of the main contractor.
Two sources said that the Abu Dhabi-headquartered Trojan has been awarded the contract to finish the terminal’s construction, the report concluded.
