Dubai metro contractors owed $3bn 8, January 2010Posted by thegulfblog.com in The Emirates.
Tags: Dubai, Dubai crash, Dubai debt, Dubai metro, Dubai metro debt, Gulf metro, UAE
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Days after the opening of the world’s tallest building in Dubai, the spendaholic Emirate has been brought firmly back to earth by threats to the completion of its new, highly publicised and much vaunted metro system. Essentially, it appears that the Dubai government has not paid its Japanese contractors almost $3bn and they are – understandably – slowing down construction work on the remaining unopened stations as a negotiating tactic.
The FT reports that part of the problem stems from the spiraling costs of the development, doubling to more than $7.6bn.