Dubai's Depa in dispute over Doha airport contracts

Contract performance bond and advance payment guarantee pulled - Depa.
NEWS, Aviation


Dubai-based interior contracting company Depa said on Tuesday it was in dispute with Doha International Airport over its deal to fit-out the new aviation hub, which is due to open in December.

Depa said in a statement that its lawyers were in discussions with officials at the airport after its joint venture Lindner Depa had its contract performance bond and advance payment guarantee pulled.

It said the two were worth a total of AED177m.

The performance bond and advance payment guarantee were put in place due to Lindner Depa's refusal to accept new non-favourable contract terms and conditions, including dropping all extension-of-time costs and acceleration costs.

Lindner Depa said it was denied full access to the project site to perform its contract scope of work for the first nine months of a sixteen-month project.

"As a result of the delay, Lindner Depa has not been able to start all of its interior contracting work on site as planned and consequently, would not be able to meet its original contract completion date," the statement added.

The contract, worth about AED900m, comprised the interior fit-out of all 17 lounges at the New Doha International Airport.

The statement added: "The contract has not been terminated yet. The company is in discussions with its lawyers in order to assess the situation and consider the way forward."

The New Doha International Airport project represented the largest project in Depa's backlog, but it is still working on over 200 projects across the Middle East, Africa and South East Asia.

Last month, Akbar Al Baker, CEO of Qatar Airways, said Qatar’s new international airport will officially open on December 12 after costs to build the facility increased by $1bn.

In April, Al Baker said the first phase of the New Doha International Airport (NDIA) is to hire 8,000 employees in the run-up to its opening later this year.

The upgraded facility, which could be one of the region's major aviation hubs, has already hired 3,000 staff and is in the process of recruiting a further 5,000 in time for the launch, Al Baker said.

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