UAE - Mubasher: The state-owned Abu Dhabi Airports have requested local banks to pay around AED 3 billion ($816.82 million) guarantees on behalf of contractors working on an airport expansion project, sources told Reuters.
The step, which was made ahead of an outlook for a global recovery in the travel industry, could lead to a further delay in the project.
Last Week, Abu Dhabi Airports asked for guarantees issued by UAE lenders, comprising Mashreq Bank, Abu Dhabi Commercial Bank (ADCB), and First Abu Dhabi Bank (FAB) on behalf of the contractors.
In 2012, Abu Dhabi Airports signed a $2.9 billion contract with a joint venture of contractors, comprising Arabtec Holding which has filed for liquidation, Athens-based Consolidated Contractors Company, and Turkey’s TAV Insaat.
The Midfield Terminal project was scheduled to be completed in 2017, but it was delayed several times.
In 2019, Abu Dhabi Airport’s CEO Bryan Thompson announced that the project was 97.6% completed.
The request for guarantees came after a year of disputes between the airport operator and joint venture partners over who would fund the testing phase to determine the terminal’s readiness, sources referred.
The deadline for the banks to respond to the calls on the guarantees is Thursday.
