Dubai metro plans 'delayed by financial dispute'

Date: 8/1/2010

Work on the half-complete Dubai underground system has slowed down over a financial dispute with Japanese contractors.

A consortium of four Japanese engineering companies is building the mass-transit system.

However, members have started a "work slowdown" until they are paid £4.7 billion by the Dubai government that they are owed for already-completed work, according to the Times.

The four companies, including Mitsubishi Heavy Industries and Kajima Construction, are working on the Metro project involving two lines and 29 stations.

Ten stations have already been completed, while the remainder of the project is likely to be delayed by six months due to the pay dispute.

The original $5.6 billion budget has already reportedly been run over, doubling to $10 billion.

Additional costs are reportedly due to mid-project changes ordered by the Dubai Road and Transport Authority, the Times notes.