UAE cancels TAV’s contract


Political problems between Turkey and the Gulf countries are reflected on the economy as well. United Arab Emirates (UAE) has cancelled the contract of a USD 3bn worth airport terminal project undertaken by the airport operator and contractor TAV Airports Holding.

TAV Airports won the Abu Dhabi Airport and terminal tender announced by UAE with a record bid price in 2012. The USD 3bn worth project tendered by Abu Dhabi Airports Company (ADAC) was undertaken by a consortium established by TAV Airports’ subsidiary TAV Construction, the Greece-based construction company Consolidated Contractors Company (CCC) and local partner Arabtec Holding PJSC. The new terminal building located on a total area of 702,000 square meters has been designed to serve 27 million passengers per year. 99% of the project with 106 passenger boarding bridges and over 22 kilometers of baggage carousel have been completed. The terminal building was supposed to be launched in the upcoming weeks. However, ADAC cancelled the contract without making up an excuse.

Anel Group, which had managed electricity works of the project, made a statement to the Public Closure Platform regarding the contract’s abolition process. Although the justification of abolition wasn’t officially announced, the process began months ago, according to a Turkish banker living in Dubai and participated in the project’s loan process. The decision was totally political and the prestige of Turkey and the Turkish company TAV is tried to be damaged, he commented.

The payment day of the Abu Dhabi management to the consortium approaches while the consortium should make payments to sub-contractors. Anel Group’s statement to the Public Disclosure Platform should be read in this respect.

Leave a Reply

Your email address will not be published.