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Tue 22 Sep 2015 02:43 PM

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Malaysian builder pulls out of Abu Dhabi project over payment dispute

Zelan Holdings says its owed $7.5m for works done on the Meena Plaza project

Malaysian builder pulls out of Abu Dhabi project over payment dispute

Construction work on the delayed AED980 million ($267 million) Meena Plaza project in Abu Dhabi has been stalled once more after a Malaysian construction company building the multi-tower project pulled out.

The National reported that Zelan Holdings has pulled out of the project in the Port Zayed area of the city because it has not been paid.

A notice was issued late last week to Meena Holdings, a company owned by the private Abu Dhabi developer Tamouh and which is developing the project, over a failure to pay $7.5 million, according to an announcement made on Bursa Malaysia.

Zelan said it is seeking to terminate its employment based on the money owed and Meena Holdings' “continuous interference with the valuation and/or certification” of money owed.

The statement said Zelan would now seek to terminate the contract within 14 days (from last Thursday) and seek to recover any loss and damage arising out of the termination.

The four tower project, which includes one office tower and three apartment towers, was started at the end of 2007, but stalled in 2012. Work resumed in September 2014 after protracted negotiations between the two companies, which saw Meena Holdings pay Zelan around $32 million to resume work on the project.

The 246,500 square metre project includes a helipad, sun bathing deck, a covered Jacuzzi and wading pool, as well as a cinema and private medical centre.

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