Qatar Rail terminates Doha Metro station builder’s contract
Qatar Rail released a statement confirming it has terminated the contract of the consortium that was building the main stations for the Doha Metro Project.
According to media reports, the QR5.1 billion design and build contract to construct the major Msheireb and Education City stations had been awarded to a consortium comprising the South Korean builder Samsung C&T, Spanish contractor Obrascon Huarte Lain (OHL) and Qatar Building Company in May 2013.
But in a statement, OHL said that it had received notification of its contract's termination within the next 14 days, citing "non-compliance of certain contractual obligations".
Samsung C&T held a 50 per cent stake in the consortium, while OHL held 30 per cent and Qatar Building held 20 per cent.
OHL said that before its contract was terminated, the consortium had presented the clients with several points of dispute, which, under the terms of the contract, should have led to some form of negotiation of formal arbitration, rather than the termination of its contract.
The Spanish contractor also said that the reasons given for its termination "lack any legitimate grounds". It said that as a company it only had work outstanding to the value of €247.7 million (QR1.03 billion).
Qatar Rail stated that it would take every step to protect its rights and believes that its decision was made on solid contractual grounds.
The spokesman also said that it was working to ensure that it will "minimise delays and risks to this part of the Doha Metro project".
Qatar Rail recently announced that tunnelling activity was close to 90 per cent complete and that the overall Doha Metro project was nearing 40 per cent completion.
The first phase of the Doha Metro project, which will contain 86km of tracks and 38 stations, is due for completion in 2019.
Photo Credits: Avi Viljoen
Because in this case the withdrawal wasn't for profit
Why can't somebody simply withdraw from a project & catch another one to 150% extra profit ..... ? Have positive view some times .....................
MM - then what is your opinion, why do you think the cancelled the contract. There was reports that everything was on track and the metro was being well built by the contractors. Why do you think they cancelled the contract?
MM - then what is your opinion, why do you think the cancelled the contract. There was reports that everything was on track and the metro was being well built by the contractors. Why do you think they cancelled the contract?
Zack, No need to doubt. ...........................
Everything is crumbling, who makes the decisions. Someone always have their own agenda.
That is bad news.
Whatever you say.