Author : editorial
Work has restarted on Dubai's Metro after a settlement was reached with a Japanese-led consortium over disputed payments of about $2bn-$3bn, according to two sources aware of the situation.
The consortium members - including the Japanese companies Obayashi, Mitsubishi Heavy Industries, Mitsubishi and Kajima and a Turkish contractor - slowed work last month to strengthen their hand in talks with the Dubai Roads and Transport Authority.
However, construction of the 18 unfinished stations on the main red line and another 18 on the unopened green line started again on February 7, according to contractors, and there is optimism that the whole red line may be able to open in the next few months.
One person close to the talks said the consortium would accept most of the payments it claims are -outstanding over several years. Final touches are also being put on a deal that should pave the way for the completion of this vital infrastructure project, which Dubai hopes will help maintain its position as the Gulf's commercial hub.
Resolving this dispute may also start to repair Dubai's reputation for non-payment after the city's property crash and recession left many contractors empty-handed.
Concern has grown over the restructuring of $22bn (€16bn, £14bn) of debts at the troubled conglomerate Dubai World .
Given the scope of the disputed non-payments, the consortium is thought to have asked for Dubai's government to provide a guarantee on the restructured payment plan. It is unclear whether this will form part of the final agreement.
Transport and f finance officials declined to comment. Obayashi said only that talks with the authorities were continuing.
Source : Zawya
